BMO Capital analyst Daniel Boyd downgraded Halliburton (HAL) to Market Perform from Outperform with an unchanged price target of $23.

The shares closed Tuesday up 34c to $24.69.

While down 7% year-to-date, Halliburton is the best performing large-cap energy stock over the past three months on positive changes in frac fundamentals, macro improvements, and high short interest, Boyd tells investors in a research note. However, further outperformance likely requires positive estimate revisions, says the analyst, who expects a "tepid recovery" in U.S. frac despite seasonally higher demand and attrition. His channel checks suggest that pricing remains competitive and visibility for January is limited.

Halliburton's current valuation suggests limited share upside, contends Boyd.