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Wells Fargo dropped analyst Roger Read Baker Hughes Co (NASDAQ: BKR) from Overweight to Equal-Weight with a $29 price target, down from $32.
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Read writes that the Energy Services sector is on track to deliver consistent sequential and year-over-year earnings and cash flow improvements as global E&P spending increases in 2023 and 2024.
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Macroeconomic headwinds may persist, but energy security and general oil and gas supply challenges around the world (sanctions and lack of spare capacity) have created a persistent undersupply situation, which should support oil prices. commodities and upstream investments.
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Notably, the analyst shifted valuation metrics for the Energy Services sector mid-cycle as he believes the Energy Services sector should outperform the broader market.
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The stock has outperformed the broader market year-to-date, reflecting its energy-centric positioning.
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He sees Baker as a “show me” stock “that could easily continue to lag its peers for another quarter or two.”
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He reduced the valuation multiples and lowered the shares.
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Price Action: Shares of BKR were trading 1.74% higher at $26.55 at last check on Wednesday.
Latest Rating for BKR
|
Date |
Stable |
Action |
From |
To |
|---|---|---|---|---|
|
Jan 2022 |
JP Morgan |
Downgrades |
Overweight |
Neutral |
|
Oct 2021 |
Stephens & Co. |
Maintained |
Overweight |
|
|
Oct 2021 |
Barclays |
Maintained |
Overweight |
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