Baker Hughes Back Among Credit Suisse's Top 3 Picks In Oil Field Services

Analysts James Wicklund and Jacob Lundberg pointed out that full-year cost savings have the potential of delivering 30 percent more than the earlier forecast offered by the company. Their comments came on the back of seven quarters of catch-up cost reductions. The analysts took into consideration the $600 million cost savings compared to the $500 million expected in the second half as a whole. In all, the company is predicted to realize $650 million before year-end 2016.

Following the better-than-estimated cost savings, the brokerage boosted its EBITDA estimates for the year 2017 and 2018 from $1.10 billion to $1.62 billion and $2.27 billion to $2.43 billion, respectively. As a result, the firm boosted the price target from $56 to $61 while retaining Outperform rating on the stock.

Credit Suisse also maintains Baker Hughes as one of its top three picks in the oilfield services sector. In a research note, the firm said, "BHI's AutoTrak directional drilling business is doing well globally, the US pressure pumping segment should see resolution in the next few months, and the focus on product innovation was reiterated. After being on the sidelines, in many ways for over a year, it is clear that BHI has rejoined the ranks of the 'Big 3' OFS companies."

At last check, the stock gained 0.83 percent to $54.84.