UPDATE: Morgan Stanley Downgrades Baker Hughes to Equal-Weight on North America Deterioration
Morgan Stanley reduced its rating on Baker Hughes (NYSE: BHI) from Overweight to Equal-weight and lowered its price target from $55 to $50.
Morgan Stanley commented, "While we have been cautious on North America, recent profit warnings and conversations with operators indicate that activity in 4Q has deteriorated even faster than we had expected with a major slowdown since Thanksgiving in the US. Additionally, Canada, which accounts for ~15% of NAm has seen the rig count decline 20% y/y and may be down as much as 30% by year-end, with further deterioration in pricing."
Baker Hughes closed at $41.09 on Thursday.
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