Baker Hughes upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded Baker Hughes to Overweight from Neutral with a $32 price target. Despite the company’s leverage to liquified natural gas and the strength in upstream spending fundamentals, Baker shares have meaningfully lagged peers since the beginning of 2022, the analyst tells investors in a research note. The firm says the underperformance was driven by earnings headwinds associated with the exit from Russia, currency, and post pandemic supply chain challenges as a global manufacturer. However, it sees "favorable tailwinds" which should support much better performance in 2023 relative to expectations. Baker is seeing an improvement in its overall supply chain, including declining raw material costs in production chemicals, says JPMorgan.