Why Shares of Baker Hughes, a GE Company, Fell 14% in October
Shares of Baker Hughes, a GE Company, (NYSE: BHGE) tumbled 14.2% in October. While some tepid commentary from analysts initially weighed on the stock, the primary fuel driving the decline was the company's weak third quarter.
Analysts haven't been all that bullish on Baker Hughes' prospects since it combined with GE's (NYSE: GE) oil and gas business earlier this year. That didn't change in October. Deutsche Bank, for example, initiated coverage on 20 oil service stocks last month, but rated Baker Hughes a hold, choosing rival Halliburton (NYSE: HAL) and two others as its best long-term ideas. Meanwhile, UBS started Baker Hughes with a neutral rating, due in part because it has less exposure to the faster-growing U.S. land market driven by shale drilling now that it's part of GE (which is where Halliburton excels). Finally, J.P. Morgan thinks that GE might end up unloading its stake in Baker Hughes to help turn the industrial giant's fortunes around.
Image source: Getty Images.
Source: Fool.com
