The Agreement Between Halliburton And Baker Hughes Should Create LT Value, Says Deutsche Bank
In a research report issued today, Deutsche Bank analyst Mike Urban reiterated a Buy rating on Halliburton Company (NYSE:HAL) with a $69 price target, as HAL and Baker Hughes (NYSE:BHI) announced an agreement to merge, potentially combining the #2 and #3 players to create an industry giant.”
Urban noted, “After reacting favorably on Friday when news of the negotiations was disclosed, HAL’s stock sold off sharply today as pricing, structure and terms/ conditions favored BHI to a much greater extent than anticipated.”
The analyst added, “Although the challenges in completing and integrating the deal will be significant, we believe it is a risk worth taking as the new HAL could dramatically alter the balance of power in the industry and should create long-term value for shareholders. We therefore reiterate our BUY rating.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike Urban has a total average return of -0.4% and a 48.1% success rate. Urban has a -12.4% average return when recommending HAL, and is ranked #2557 out of 3377 analysts.