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Wall Street Forecasts for Baker Hughes before 1Q18 Earnings

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Apr. 18 2018, Updated 9:30 a.m. ET

Wall Street’s forecasts for Baker Hughes, a GE Company

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Analysts’ rating for Baker Hughes

As of April 12, 2018, 47% of Wall Street analysts tracking Baker Hughes rated it a “buy” or some equivalent. Approximately 53% of sell-side analysts tracking BHGE recommended a “hold,” and none rated a “sell” or some equivalent.

In comparison, ~59% of sell-side analysts tracking TechnipFMC (FTI) rated it a “buy” or equivalent as of April 12, 2018, while 28% recommended a “hold.” The rest of sell-side analysts rated it a “sell,” according to data compiled by Reuters.

Analysts’ rating changes for BHGE

From January 12 to April 12, 2018, the percentage of analysts recommending a “buy” or equivalent for BHGE has increased from 39% to 47%. Analysts’ “sell” recommendations, however, decreased during this period. A year ago, ~58% of sell-side analysts recommended a “buy” for BHGE. Baker Hughes makes up 3.3% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES provides exposure to the oil and gas equipment and services segment. XES decreased 15% in the past year, versus a 22% drop in Baker Hughes’s stock price.

Analysts’ target prices for BHGE and its peers

Wall Street analysts’ mean target price for BHGE as of April 12, 2018, was ~$35.8. BHGE is currently trading at ~$32.1, implying ~11% upside at its current price. A month ago, analysts’ average target price for BHGE was $36.1.

The mean target price surveyed among sell-side analysts for Keane Group (FRAC) was $21.5 as of April 12, 2018. FRAC is currently trading at ~$15.8, implying 36% returns at its current price. The mean target price surveyed among sell-side analysts for Precision Drilling Corporation (PDS) was ~$5.6 as of April 12. PDS is currently trading at ~$3.1, implying 79% upside at its current price.

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

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