Baker Hughes Stock Surpasses Analyst Targets: What Does It Mean for Investors?
In recent trading, shares of Baker Hughes Company (Symbol: BKR) have crossed above the average analyst 12-month target price of $48.65, changing hands for $48.85 per share. When a stock hits an analyst’s target, two reactions typically follow: a downgrade based on valuation or an upward adjustment of the target price. Analysts may also consider recent business developments that contribute to the stock’s rise. If the company’s outlook is promising, it may be time for an analyst to increase their price target.
There are 23 different analyst targets in the Zacks coverage universe that contribute to Baker Hughes’ average price target. However, this average is just that—a mathematical mean. Some analysts have lower targets, one even suggesting a price of $42.00. Conversely, one analyst predicts a high of $55.00. The standard deviation among these targets is $3.6, illustrating differing opinions on the stock’s potential.
The main reason to examine the average price target of BKR is to leverage the “wisdom of crowds”, aggregating insights from many analysts rather than relying on a single expert’s opinion. As BKR surpasses the average target price of $48.65 per share, investors are prompted to take a closer look at the company’s prospects: Is $48.65 a stepping stone to an even higher target, or has the stock’s valuation stretched too thin, warranting some profit-taking? Below is a table summarizing the current analyst ratings for Baker Hughes Company:
| Recent BKR Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 19 | 19 | 19 | 19 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 3 | 3 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.3 | 1.3 | 1.23 | 1.23 |
The average rating in the table uses a scale from 1 to 5, where 1 is Strong Buy and 5 is Strong Sell. This article incorporates data provided by Zacks Investment Research via Quandl.com. For the latest Zacks research report on BKR, click here — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
