UPDATE: Societe Generale Upgrades Baker Hughes on Potential Benefits From Strong Growth In Deepwater Gulf of Mexico

In a report published on Thursday, Societe Generale analyst Edward Muztafago upgraded Baker Hughes BHI from Hold to Buy and maintained a price target of $54 on the company.

In the report, Societe Generale stated, "BHI has the largest per share exposure to deepwater GOM growth, and our calculations suggest its land-based activity / EBIT hurdle should prove much less than peers. The mix of operators driving the 2012 US land activity pullback looks to favour HAL and SLB onshore, but BHI's deep GOM leverage rebalances its relative risk/reward proposition, in our opinion."

Baker Hughes closed on Wednesday at $45.35.