While Anadarko’s shares were downgraded yesterday on fears of liability for the Gulf spill, Halliburton, which provided cementing services at the Deepwater Horizon well site, drew a ratings upgrade today.
FBR Capital Markets equity analyst Robert Mackenzie upgraded Halliburton’s rating from “perform” to “outperform” and brought back its $44 price target for the stock, the Dividend Daily said. Halliburton’s clarification of its role in the oil spill was credited for the upgrade.
FBR analyst remarked, “While the cement must have failed to seal the production zone to allow flow to occur, we believe that other circumstances and decisions were far more central to creating the conditions where the integrity of the cement job became relevant. Apart from setting the record straight that foamed cement has been pumped many times, questions posed towards HAL’s Tim Probert at recent congressional hearings were more focused on relevant wellsite procedures, which seemingly lessens HAL’s headline risk.”