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Wall Street’s Forecasts for Baker Hughes after Its 3Q17 Earnings

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Oct. 25 2017, Updated 11:38 a.m. ET

Wall Street’s forecasts for Baker Hughes

In this article, we’ll look at Wall Street analysts’ forecasts for Baker Hughes, a GE Company (BHGE) following its 3Q17 earnings release.

On October 20, 2017, ~39% of the sell-side analysts surveyed by Reuters that track Baker Hughes rated it as a “buy” or some equivalent. Approximately 55% rated the company as a “hold” or an equivalent. Only 6% of the analysts recommended a “sell” or an equivalent.

Approximately 56% of the analysts tracking Core Laboratories (CLB) rated it as a “buy” or some equivalent on October 20. Approximately 44% rated the company as a “hold.”

The energy sector makes up 6.0% of the S&P 500 Index (SPX-INDEX). The S&P 500 Index has risen 20% in the past one-year period versus a 9% fall in BHGE’s stock price and a 21% fall in IEZ. Baker Hughes comprises 5.6% of the iShares US Oil Equipment & Services ETF (IEZ).

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Analysts’ rating changes for BHGE

From July 20, 2017, to October 20, 2017, the percentage of analysts recommending a “buy” or some equivalent for BHGE has decreased from 47% to 39%. Analysts’ “hold” recommendations have increased for BHGE during the same period. During the same period in 2016, ~61% of the sell-side analysts recommended a “buy” for BHGE.

Analysts’ target prices for BHGE

Wall Street analysts’ mean target price for BHGE on October 20 was ~$44. BHGE is currently trading at ~$33, implying an ~32% upside at its current price. A month ago, analysts’ average target price for BHGE was $48.30.

Target prices for BHGE’s peers

The mean target price for NCS Multistage Holdings (NCSM), as surveyed among the sell-side analysts, was $20.60 on October 20. NCSM is currently trading at ~$20.60, implying a 46% upside at its current price.

The mean target price for Oil States International (OIS), as surveyed among the sell-side analysts, was $27.40 on October 20. OIS is currently trading at ~$23.20, implying an 18.0% upside at its current 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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