Halliburton Co. (HAL): See Improving North America Pricing Along with Broad International Opportunity Set; Buy

We come away from 3Q earnings constructive on the company’s 2027 setup, where we see a favorable risk/reward as well as a range of earnings growth opportunities. We believe the company is well-positioned for top line growth and margin expansion heading into the next year, supported by international regions, such as Latin America where we see increasing activity and incremental awards driving growth. At the same time, we see the potential for improving pricing in North America, underpinned by a tight market for high-quality frac equipment as highlighted by the company’s conversations with US operators. While we expect global activity to support margin expansion, we also highlight key components that are not dependent on an activity ramp. This includes the company’s focus on ongoing structural cost reductions. As we look out, we believe HAL continues to offer an attractive valuation opportunity and exposure to key market tailwinds. Estimate Changes and Valuation. We are adjusting our EBI