Seeking Alpha

Baker Hughes +1.5% as Goldman upgrades to Buy

  • Baker Hughes (BHI +1.5%) is upgraded to Buy from Neutral with a $72 price target, up from $60, at Goldman Sachs, based on increased forecasts for pressure pumping and expected margin improvement.
  • BHI is second only to Halliburton (HAL) in exposure to U.S. land, but its operating margins have lagged HAL’s; the firm has been skeptical of BHI's ability to improve North American margins to mid-teens by H2 2014, but has grown more optimistic now that rig activity is stronger than expected and pressure pumping prices could go higher.
  • Consensus estimates do not reflect the potential for improvement, which the firm sees an opportunity; also, despite a strong run YTD, BHI’s valuation looks compelling.
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio: