It’s been almost a linear move higher for investors in oil and gas company Halliburton (NYSE:HAL). Today, HAL stock is up another 0.5%, and this stock hit a fresh new 52-week high. While Halliburton still remains well off its all-time high, one analyst provided a HAL stock price prediction that has the market buzzing.
Today’s price action appears to be tied to yet another price target increase and buy rating from an analyst. Barclay’s is the latest investment firm to upgrade HAL stock, issuing a $53 price target for this company.
Price target upgrades generally signal to the market more upside than analysts had previously modeled. For most companies in this market, downgrades are commonplace. Stock prices are dropping across the board, factoring in a weaker economy moving forward. Analysts are typically behind the curve on such moves, and tend to decrease price targets only when it’s clear that fundamentals have deteriorated to a point where their previous price target is unlikely to be hit.
Accordingly, bullish price targets aren’t out of the ordinary. Perhaps this is a no-news situation. However, the fact that we’re still seeing price upgrades (mainly in the energy and commodities sectors) is somewhat of a positive sign.
Let’s dive more into what’s potentially behind this price target increase.
HAL Stock Price Prediction
Amid impressive recent results, it’s clear why Barclay’s is keen on upgrading this stock. The oilfield drilling and services company is operating in a very bullish environment. Companies in the oil and gas sector are looking to increase production, for the first time in a while. Sky-high commodity prices have provided a newfound tailwind for Halliburton, in the same way as the pandemic provided a catastrophic headwind. It’s a good time to be an investor in this space.
Indeed, so long as oil prices remain high, Halliburton is likely to remain a beneficiary of this inflationary environment. While tighter Federal Reserve policy may have an effect on demand, supply challenges in the energy sector could prolong the rallies seen in many energy-related stocks. In my view, analysts are right to upgrade their view on this sector.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.