D.A. Davidson Believes BHI Won’t Stop Here

By Carrie Williams

D.A. Davidson analyst Sonny Randhawa reiterated a Buy rating on Baker Hughes (NYSE: BHI) today. The company’s shares closed last Friday at $58.64, close to its 52-week high of $62.16.

According to TipRanks.com, Randhawa is a top 100 analyst with an average return of 40.4% and a 67.2% success rate. Randhawa covers the Basic Materials sector, focusing on stocks such as Independence Contract Drilling, Parker Drilling Company, and Precision Drilling.

Currently, the analyst consensus on Baker Hughes is Moderate Buy and the average price target is $56.13, representing a -4.3% downside.

In a report issued on October 31, FBR Capital also reiterated a Buy rating on the stock with a $62 price target.

Based on Baker Hughes’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $2.35 billion and GAAP net loss of $429 million. In comparison, last year the company earned revenue of $3.79 billion and had a GAAP net loss of $159 million.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Belgacem Chariag, the VP of BHI sold 15,000 shares for a total of $871,274.

Baker Hughes, Inc. supplies oilfield services, products, technology, and systems to the worldwide oil and natural gas industry. It operates through the following segments: North America, Latin America, Europe/Africa/Russia Caspian, Middle East/Asia Pacific, and Industrial Services. Its services includes: integrated operations; reservoir services; drilling; evaluation; completions; production; subsea production alliance; pressure pumping; tubular services; process and pipeline services; downstream chemicals; and specialty chemicals. The company was founded in April 1987 and is headquartered in Houston, TX.