Oppenheimer analyst James Schumm came out with his views on Halliburton Company (NYSE:HAL), following the news that the company plans to hawk three business units as it works to persuade antitrust regulators to clear its $34.6 billion deal to buy smaller rival Baker Hughes. The analyst rates the stock an Outperform with a $60 price target.
Schumm noted, “While it is no surprise that these businesses are on the auction block, the timing suggests that things may be moving along quicker than we expected. Nevertheless, we still see the potential for plenty of speed bumps along the way, and we continue to forecast an end-of-year closing. We view the directional drilling/MWD/LWD auction as most important strategically as Halliburton (and Schlumberger) seek to preserve a de facto duopoly in international markets.”
Furthermore, “We expect to hear some news regarding assets sales over the next few weeks. Meanwhile, HAL continues to work with the Department of Justice into midsummer on further divestment requirements. After satisfying the DoJ, Halliburton will focus on international anti-trust issues (EU, Brazil?) and potentially close the deal in Q3 if all goes smoothly.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst James Schumm has a total average return of 7.6% and a 100.0% success rate. Schumm has a 12.4% average return when recommending HAL, and is ranked #1638 out of 3569 analysts.