Halliburton (NYSE:HAL) Margins, Global Front Sales Improve

Halliburton (NYSE:HAL) has a number of levers it can pull to achieve its margin target of 24 percent, say Canaccord, once completion equipment adds reach the market.

Canaccord says, "Although NAM was negatively impacted by the GoM slowdown, it still managed to achieve 10% sequential growth and 24% margin. Management highlighted the numerous levers that it has at its disposal to maintain margins when anticipated completion equipment adds hit the market throughout 2011. On the International front sales, increased 11% q/q, and margins improved 60bps to 16.2%. Overall International outlook for Halliburton 2011/12 looks increasingly promising, and the company is taking initiatives for improving sales and returns once the global ramp-up is at full speed."

Canaccord Genuity maintains a 'Buy' rating on Halliburton (HAL), which closed Tuesday at $40.20, gaining $0.65, or 1.64 percent. Canaccord has a price target on Halliburton of $50.