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Wall Street’s Forecasts for BHI before Its 1Q17 Earnings Release

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Wall Street’s forecasts for Baker Hughes

In this article, we’ll look at the recent Wall Street analysts’ forecasts for Baker Hughes (BHI) before its 1Q17 earnings release. BHI is expected to release its 1Q17 financial results on April 25, 2017.

In comparison, ~85% of the analysts tracking Schlumberger (SLB) rated it as a “buy” or some equivalent on April 10, 2017, while ~15% of analysts tracking SLB rated it as a “hold.”

Baker Hughes (BHI) comprises 0.11% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 6.1% of IWV, which tracks the Russell 3000 Index (RUA-INDEX). The RUA-INDEX increased 16% in the past year versus the 48% rise in BHI’s stock price.

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Analysts’ rating changes for BHI

From January 10–April 10, 2017, the percentage of analysts recommending a “buy” or some equivalent for BHI decreased from 62% to 58%.

Analysts’ “hold” recommendations increased for BHI during this period. A year ago, ~70% of the sell-side analysts recommended a “buy” for BHI.

Analysts’ target prices for BHI and its peers

Wall Street analysts’ median target price for BHI on April 10 was $69.70. BHI is currently trading at ~$61.70, implying an ~13% upside at its current median price. A month ago, analysts’ average target price for BHI was unchanged.

The mean target price for McDermott International (MDR), surveyed among the sell-side analysts, was $8.54 on April 10. MDR is currently trading at ~$6.80, implying an ~26% upside at its average target price.

The mean target price for Tidewater (TDW), surveyed among the sell-side analysts, was $1.50 on April 10. TDW is currently trading at $0.91, implying a 65% upside at its average target price.

You can learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.

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