Two analysts launch coverage of Baker Hughes: One buy, one neutral

|About: Baker Hughes, a GE company (BHGE)|By:, SA News Editor

Baker Hughes (BHGE +1.5%) bumps higher after Morgan Stanley resumes coverage at Overweight with a Street-high $60 price target, saying the "lower cyclicality" and strong free cash flow should "re-rate" the stock.

BHGE’s integrated offering and financing capability places BHGE in the same "weight class" as other "big gorillas" including Schlumberger (NYSE:SLB) and TechnipFMC, according to Stanley analyst Ole Slorer; this, combined with GE's manufacturing footprint, capital discipline and financing capability, has the potential to create a formidable competitor.

FBR Capital's Thomas Curran also initiates coverage but with a more cautious Market Perform rating and $42 price target, believe BHGE has inferior exposure to the most attractive investment themes as opposed to other large-cap options.