Halliburton (NYSE:HAL) Estimates, Valuation Raised by Wells (NYSE:WFC)

Wells Fargo (NYSE:WFC) raised its earnings estimates and valuation on Halliburton (NYSE:HAL), citing the use of $1 billion in free cash flow which will probably be used for acquisitions or increasing the dividend the company offers.

"We are increasing our 2011E and 2012E EPS to $2.71 and $3.00 from $2.62 and $2.67, respectively. We are still slightly below 2012 consensus expectations of $3.16. Our new valuation of $44-$46, up from $39-$41, is now based on our 2012 forecasts," said Wells.

A rating of "Outperform" is maintained on Halliburton by Wells Fargo, which closed Monday at $37.39, dropping by $0.70, or 1.84 percent.