Wednesday, May 25, 2011

Halliburton's (HAL) Improved Outlook Bodes Well for Sector

Shares of Halliburton (NYSE:HAL) have been getting a nice bump after the company announced its business in North America is strong and Morgan Stanley (NYSE:MS) boosted its rating on the company.

Chief Financial Officer Mark McCollum said at the UBS Global Oil and Gas Conference that its North American business is “very robust” and is continuing to grow stronger.

Morgan Stanley (NYSE:MS) responded to the comments by upgrading Halliburton from an "Equal Weight" to an "Overweight." They have a price target of $85 on the energy giant.

Other analysts responding included those at Tudor Pickering Holt, which said the comments appear to point to a solid second quarter and should give some of the smaller companies in the sector a solid upward push, especially those that are "relatively cheap."

Halliburton was trading at $49.20, gaining $1.70, or 3.58 percent, as of 12:53 PM EDT.

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