Societe Generale Upgrades Baker Hughes (BHI)

Societe Generale Upgrades Baker Hughes (BHI)


Societe Generale, the multi-national French finance firm, reported on Thursday that it’s upgrading oil-driller Baker Hughes (BHI) to “Buy” from “Hold.”

Edward Muztafago, an analyst with the firm, noted, “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.” Societe Genreale now has a “Buy” rating on the stock along with an unchanged price target of $54 a share.

Baker Hughes shares were up on Thursday alongside the broad market, gaining a solid 3.53% on the day. The stock is up nearly 15% YTD.

The Bottom Line

Shares of Baker Hughes (BHI) have a 1.28% yield, based on Thursday’s closing price of $46.95.

Baker Hughes (BHI) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.