Baker Hughes: What Does Wall Street Say after the Merger Failure?
Baker Hughes–Halliburton Merger Falls Through: Impact on BHI
Wall Street’s forecasts for Baker Hughes
In this article, we’ll look at Wall Street analysts’ forecasts for Baker Hughes’ (BHI) shares following its merger termination with Halliburton (HAL).
Consensus rating for Baker Hughes
Approximately 65% of analysts tracking Baker Hughes rate it a “buy” or some equivalent. Approximately 29% rate the company a “hold” or equivalent while the rest recommend a “sell.”
In comparison, approximately 29% of analysts tracking C&J Energy Services (CJES) rate it a “buy” or some equivalent and approximately 62% have rate it a “hold” while the rest rate it a “sell.” Baker Hughes is 0.22% of the iShares S&P 500 Value ETF (IVE).
Analysts’ recommendations for BHI
When it comes to individual recommendations, Robert Baird gave Baker Hughes a target price of $47, one of its lowest target prices, following the merger termination with Halliburton. BHI currently trades near $45.5, implying a ~3% return for the next 12 months. Evercore ISI, another independent research firm, gave BHI a one-year target price of $63, one of its highest target prices. This target implies a 38% return over the next year.
Among the large investment banks, Credit Suisse (CS) gave Baker Hughes a one-year target price of $56, which implies a ~23% return over the next 12 months.
Analysts’ target prices for BHI
Following the merger break-up, while the highest target price for BHI is $63, the lowest is $39. The median target price surveyed among sell-side analysts for BHI is ~$52. BHI is currently trading at ~$45.5, implying a ~14% upside at its median price. To learn more about Baker Hughes’s performance, read Market Realist’s A Comprehensive Analysis of Baker Hughes.
Browse this series on Market Realist:
