Source: davit kirakosyan
Halliburton: A Closer Look at BMO Capital’s Market Perform Rating
Recently, BMO Capital has reiterated a Market Perform rating on Halliburton (NYSE: HAL), one of the world’s leading providers of products and services to the energy industry. The firm has also set a $31 price target on the company’s stock, citing the relative resilience in North American activity and steady international growth as the primary reasons.
Halliburton’s performance in North America has been particularly noteworthy, demonstrating a strong resilience in the face of various market challenges. The company’s steady international growth further underscores its ability to maintain a robust global presence.
Expectation of Stronger-than-usual Seasonal Performance
BMO Capital expects Halliburton’s fourth-quarter 2025 results to show stronger-than-usual seasonal performance in North America. This prediction is in line with the company’s recent performance trends and its demonstrated ability to thrive in the region’s competitive business environment.
In addition to the expected robust performance in North America, the firm also anticipates continued international momentum for Halliburton. BMO forecast fourth-quarter earnings per share of $0.56 and EBITDA of approximately $1.02 billion. These figures, if realized, would further cement Halliburton’s position in the global energy sector.
Projections for Full-year 2026
Looking further ahead, BMO Capital has also provided projections for full-year 2026. The firm anticipates EBITDA of $4.01 billion and earnings of $2.21 per share. These predictions reflect a modest pullback in global upstream spending, a trend that may be influenced by various factors such as fluctuations in oil prices and changes in energy consumption patterns.
In terms of EBITDA margins, they are expected to decline about 30 basis points year over year to 18.5%. Despite this anticipated slight decline, the margins remain within a healthy range, reflecting Halliburton’s ability to manage costs and maintain profitability.
Adjustments to EBITDA Estimates
BMO Capital has also made slight adjustments to its first-quarter 2026 EBITDA estimate for Halliburton, raising it to $952 million from the previous estimate of $938 million. This adjustment suggests a positive outlook for the company’s performance in the early part of 2026.
Furthermore, the firm anticipates year-over-year growth in the second half of the year. This projection aligns with the general expectation of business recovery and growth as the global economy continues to rebound from the impact of the pandemic.
Halliburton’s Stake in VoltaGrid and International Partnerships
BMO Capital’s report also highlights Halliburton’s 20% ownership stake in VoltaGrid and its international partnerships as areas to monitor. These partnerships and investments play a crucial role in the company’s growth strategy and in diversifying its revenue streams.
The firm estimates that roughly $2.50 to $3.00 per share of value related to these assets is already reflected in the stock price. This suggests that these partnerships and investments contribute significantly to Halliburton’s market valuation, enhancing its attractiveness to investors.
In conclusion, Halliburton continues to demonstrate resilience and steady growth, achieving a Market Perform rating from BMO Capital. The company’s strong performance in North America, coupled with its robust international growth, justifies this rating and the $31 price target set by the firm. As Halliburton navigates the challenges and opportunities of the global energy sector, its strategic partnerships and investments are expected to play a crucial role in its continued success.