UPDATE: J.P. Morgan Downgrades Baker Hughes; Upgrades Weatherford
J.P. Morgan commented in the report, "With few signs of an inflection point in the international markets, we continue to believe investors should be positioned towards a North America “recovery trade” as the market comes back into balance in 2H12. With pressure pumping capacity additions peaking (new equipment orders have all but ceased), it's just a matter of time for oil activity levels to absorb capacity. However, in the meantime, pricing power is firmly in the hands of the operators (E&Ps), with one exception…artificial lift, one of the reasons behind our upgrade of Weatherford to Overweight from Neutral. On the other hand, we are downgrading Baker Hughes to Neutral from Overweight on heightened execution risk to its North America turnaround strategy, as we're concerned that a logistical overhaul and infrastructure build out will be difficult to achieve by the end of the year."
J.P. Morgan maintains the following: BHI, $50 PT, closed yesterday at $40.96. WFT, $19 PT, closed yesterday at $12.45.
Latest Ratings for WFT
|Sep 2014||Gabelli & Co.||Initiates Coverage on||Buy|
|Jun 2014||Drexel Hamilton||Initiates Coverage on||Hold|
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