Morgan Stanley Maintains Overweight on Baker Hughes

Morgan Stanley reiterates its Overweight rating on Baker Hughes (NYSE: BHI) as the company reports a 4Q earnings miss and strong international performance.

Morgan Stanley says, "EPS of $1.22 came in below our $1.32 and consensus $1.33, while EBIT of $841mm came in 9.2% below our $926mm expectation with weak NAm margins driving the miss. This was partly offset by robust international performance, with ~6% top line growth and margins surpassing the 15% mark. While we expect the stock to come under pressure, we see a shift in mix towards “higher-quality” international earnings as a key driver of multiple expansion in 2012."

BHI closed at $47.73 a share on Monday.