Citi Lowers Halliburton Price Target Amid Softer Domestic Market

Citi analysts lowered their price target for Halliburton (NYSE:HAL) to $45 from $50 while maintaining a Buy rating on the stock. The analysts cited a slightly weaker domestic frac market as the reason for adjusting the company's financial estimates. Q2 revenue estimate has been trimmed by 1% to $5.93 billion, with EBITDA also reduced by 1% to $1.33 billion, which remains 1% above Street estimates.

For Q3, North American revenues are expected to remain flat at $2.6 billion, while Q4 revenues are projected to decline by 7% sequentially to $2.41 billion due to anticipated seasonal weakness and efficiency gains in frac operations. Despite these challenges, international operations are expected to remain strong, with a forecast of 5% sequential growth in Q3 and 4% in Q4, contributing to a 10% year-over-year increase.

Citi’s Q3 EBITDA estimate stands at $1.39 billion, aligning with Street estimates, while the Q4 forecast is set at $1.37 billion, 5% below consensus. Looking ahead to 2025, Citi anticipates 4% growth in North America and 7% internationally, driving total EBITDA to $5.79 billion, which is 6% below previous expectations and 4% below Street estimates.