UPDATE: Bank of America Raises PT on Baker Hughes from $91 to $98

Bank of America has published a report on Baker Hughes BHI raising the price target from $91 to $98. In the report, Bank of America wrote, "We maintain our Buy rating as we forecast BHI to exceed its 4Q11 int'l margin target of 15% and narrow the North American margin gap to the peers. Int'l margins improved more than 120bp to 13.5% during 2Q11 and int'l pricing is picking up. Additionally, there is increasing acceptance of BHI's integrated services (a benefit of the BJ Services acquisition) and BHI's later-cycle businesses like production services, chemicals and electric submersible pumps (ESPs) should outperform as the cycle matures. We are increasing our 2011/2012 EPS estimates to $4.45/$6.20 from $4.23/$5.49 and raising our PO to $98 (implies 13x our 2013 EPS estimate of $7.50) from $91." Bank of America rated Baker Hughes a BUY with a price target of $98.00. Baker Hughes closed Tuesday at $79.75.