Halliburton (HAL) Remains CL-Buy at Goldman Sachs

Goldman Sachs reiterated a Conviction Buy on Halliburton (NYSE: HAL) with a price target of $72.00. Comments follow Q1 results.

Analyst Waqar Syed said, "We estimate that weak NAM margins were driven by weather-related activity disruptions, and we expect strong margin improvement as normal activity returns in 2Q14 and 3Q14. Management reiterated its prior guidance of close to 20% NAM margins by year-end 2014. We were very impressed by 1Q14 NAM pressure pumping revenues (NAM Completions & Production revenues) of $2.93bn, well above our $2.76bn estimate, that showed 2% sequential growth despite weather interruptions. In our view,NAM revenue growth during the remainder of the year should be very strong. LatAm margins were better than expected, and that should placate some, who thought that weakness in Brazil would weigh on the results. Europe/CIS/West Africa was in line with expectations, while the Middle East/Asia was a touch better."

For an analyst ratings summary and ratings history on Halliburton click here. For more ratings news on Halliburton click here.

Shares of Halliburton closed at $60.90 yesterday.

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