Baker Hughes, a GE Company (NYSE: BHGE) is likely to be considered a GE company for a shorter period than originally had been anticipated. With General Electric Co. (NYSE: GE) divesting its assets, including a more rapid exit from energy, Baker Hughes has received two rather positive analyst calls in the first two days of the week.
One call came from Credit Suisse on Tuesday and one was from Goldman Sachs on Monday.
Tuesday’s report from Credit Suisse reiterated an Outperform rating and showed an increased price target to $29 (from $28) along with increased expectations from better LNG sanctioning assumptions.
Credit Suisse’s Jacob Lundberg sees Baker Hughes as being positioned to win the lion’s share of future LNG contract awards. He noted:
Our analysis suggests BHGE has equipment on ~85% of the global installed base and has won ~80% of work since 2004… We increase our BHGE 2020 revenue and EBITDA forecast to $27 billion (from $26 billion) and $3.57 billion (from $3.53 billion).
On Monday, Goldman Sachs started coverage of several oilfield services stocks, and Baker Hughes was among the most positive in the group. Baker Hughes was added to the prized Conviction Buy list in the Goldman Sachs call with a $36 price target. The note that current valuations are now tracking back at historical lows of the range at the same time that free cash flow is strong.
Angie Sedita of Goldman Sachs believes that the services group can deliver a compounded annual growth rate of 15% to 30% to the bottom line for the years 2019 to 2021.
Shares of Baker Hughes were last seen trading up $0.15 at $26.65 on Tuesday, but that’s after an even larger $0.77 gain to $26.50 on Monday. Its 52-week trading range is $20.09 to $37.76.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.