Morgan Stanley Forecasts Strong Price Appreciation for Baker Hughes (NASDAQ:BKR) Stock

Key Points

• Morgan Stanley has increased its price target for Baker Hughes (NASDAQ:BKR) from $45.00 to $55.00, indicating a potential upside of 18.15% based on the company's previous close.
• Baker Hughes reported an earnings per share (EPS) of $0.63 for the last quarter, surpassing analyst expectations of $0.55, although their revenue decreased by 3.2% year-over-year.
• Despite varying price targets from analysts, Baker Hughes maintains a consensus rating of "Moderate Buy" with a target price averaging around $50.06.

Baker Hughes (NASDAQ:BKR - Get Free Report) had its price objective upped by stock analysts at Morgan Stanley from $45.00 to $55.00 in a report issued on Tuesday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's price target would suggest a potential upside of 26.41% from the company's current price.

A number of other research analysts also recently weighed in on the stock. Barclays increased their target price on shares of Baker Hughes from $48.00 to $53.00 and gave the company an "overweight" rating in a research report on Thursday, July 24th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Baker Hughes in a report on Sunday, July 27th. Stifel Nicolaus cut their price objective on shares of Baker Hughes from $50.00 to $49.00 and set a "buy" rating for the company in a report on Wednesday, July 16th. UBS Group raised their price objective on shares of Baker Hughes from $40.00 to $43.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th. Finally, Susquehanna raised their price objective on shares of Baker Hughes from $46.00 to $52.00 and gave the stock a "positive" rating in a report on Thursday, July 24th. Three research analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $51.47.

Baker Hughes Stock Performance

Shares of Baker Hughes stock traded down $1.54 on Tuesday, reaching $43.51. 7,323,705 shares of the company traded hands, compared to its average volume of 8,645,018. Baker Hughes has a 52 week low of $32.25 and a 52 week high of $49.40. The company has a 50 day moving average of $39.71 and a 200 day moving average of $41.01. The firm has a market capitalization of $42.90 billion, a PE ratio of 14.22, a PEG ratio of 5.54 and a beta of 0.94. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.41 and a quick ratio of 1.00.

Baker Hughes (NASDAQ:BKR - Get Free Report) last released its earnings results on Tuesday, July 22nd. The company reported $0.63 earnings per share for the quarter, beating analysts' consensus estimates of $0.55 by $0.08. Baker Hughes had a net margin of 11.04% and a return on equity of 14.56%. The firm had revenue of $6.91 billion during the quarter, compared to the consensus estimate of $6.64 billion. During the same period in the prior year, the firm earned $0.57 EPS. The company's revenue was down 3.2% compared to the same quarter last year. Equities analysts forecast that Baker Hughes will post 2.59 earnings per share for the current year.

Insider Activity at Baker Hughes

In related news, CEO Lorenzo Simonelli sold 526,568 shares of the stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $44.42, for a total transaction of $23,390,150.56. Following the transaction, the chief executive officer owned 667,593 shares of the company's stock, valued at approximately $29,654,481.06. This trade represents a 44.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On Baker Hughes

Several institutional investors and hedge funds have recently made changes to their positions in the business. LPL Financial LLC grew its holdings in Baker Hughes by 57.7% in the 4th quarter. LPL Financial LLC now owns 289,414 shares of the company's stock worth $11,872,000 after acquiring an additional 105,878 shares during the last quarter. Blair William & Co. IL grew its holdings in Baker Hughes by 14.9% in the 4th quarter. Blair William & Co. IL now owns 9,405 shares of the company's stock worth $386,000 after acquiring an additional 1,223 shares during the last quarter. Brown Brothers Harriman & Co. grew its holdings in Baker Hughes by 326.2% in the 4th quarter. Brown Brothers Harriman & Co. now owns 1,824 shares of the company's stock worth $75,000 after acquiring an additional 1,396 shares during the last quarter. RWA Wealth Partners LLC bought a new stake in Baker Hughes in the 4th quarter worth $877,000. Finally, O Shaughnessy Asset Management LLC grew its holdings in Baker Hughes by 31.3% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 247,001 shares of the company's stock worth $10,132,000 after acquiring an additional 58,941 shares during the last quarter. Institutional investors own 92.06% of the company's stock.

Baker Hughes Company Profile

Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations.