UPDATE: Societe Generale Downgrades Baker Hughes; Lowers PT
According to a research report published this morning, Societe Generale has downgraded Baker Hughes (NYSE: BHI) from Buy to Hold, and lowered PT from $53 to $47.
Societe Generale commented in the report, "BHI is experiencing greater margin erosion in its North American (NAM) pressure pumping operations than some of its large peers. Supply chain constraints and lingering operational issues in the legacy BJ Services business are partly to blame. We are concerned that weak investor sentiment could persist until the business turns around and this could take several quarters to achieve. Over the last month BHI shares outperformed the OSX and peers by 12% and 7%, respectively, but BHI had been the worst performing multi-service stock YTD. We believe recent outperformance may simply be bottom feeding. Underperformance could resume once the feeding frenzy is done."
Baker Hughes is currently trading at $40.94.
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