Stephens analyst Tommy Moll initiated coverage of Baker Hughes with an Overweight rating and $28 price target, calling it "not only the most compelling large cap in oilfield services and equipment, but also an underappreciated industrial investment." He expects Baker Hughes shares to continue outperforming as margins expand based on its "self-help" initiatives, Moll added.

Baker Hughes reports that the U.S. rig count is up 2 from last week to 619 with oil rigs up 5 to 511, gas rigs down 3 to 106 and miscellaneous rigs unchanged at 2. The U.S. Rig Count is down 134 rigs from last year's count of 753 with oil rigs down 80, gas rigs down 53 and miscellaneous down 1. The U.S. Offshore Rig Count is up 1 to 20, unchanged year-over-year. The Canada Rig Count is down 14 from last week to 127, with oil rigs down 10 to 60, and gas rigs down 4 to 67. The Canada Rig Count is up 22 from last year's count of 105, with oil rigs up 18, and gas rigs up 4.