Sterne Agee Reiterates Buy, $71 PT on Baker Hughes

Sterne Agee maintains its Buy rating and $71 target price on Baker Hughes

as it trims estimates for the fourth quarter ton lowers NA margins. Sterne Agee says, "Entering fourth quarter earnings, we are trimming our 4Q EPS estimate on BHI to $1.33 from $1.38 to reflect lower North American margins. BHI's management has noted at recent conferences that margins in North America are facing headwinds from cost inflation and logistics around the well site. On the international front, BHI still appears to be on track to reach its goal of 15% margins in 4Q, but as we discussed above, we are worried about the magnitude of improvement over the next few quarters." BHI closed at $50.21 per share on Wednesday.