BAKER HUGHES INC (BHI) 40.49 -$0.69 (-1.68%) 04:16AM (15 mins delay)

Downgrades: FRP, MBI, BHI

Sep 29, 2009 - 12:52 PM EDT

This morning, Wells Fargo downgraded shares of FairPoint Communications (FRP) to Underperform as bankruptcy could be on the horizon. The firm expects FairPoint to breach interest and leverage covenants before the end of the year and bankruptcy could be the only option. With that in mind, analysts at Wells Fargo see little value in the equity and lowered its price target to the range of zero to $0.50 per share. FairPoint shares were trading close to even this morning, but well into the new valuation range set by Wells Fargo. Standard & Poors lowered its credit rating on MBI Insurance from BBB to BB+ and on the holding company MBIA (MBI) from BB to BB-. The credit rating agency believes the company is at risk for further credit losses that could lead to balance sheet volatility. In morning trading, shares of MBIA were trading sharply lower, off more than five and a half percent. And Susquehanna downgraded shares of Baker Hughes (BHI) from Positive to Neutral, just three weeks after the firm initiated coverage on the oil field service company. Analysts at the firm are saying this is a valuation call as BHI shares have gained more than twenty percent since coverage was initiated and now trade in line with other stocks in the sector. However, the firm still recommends Halliburton (HAL) as a way for investors to play the oil service sector as the stock is still trading below the firms $32 price target. Shares of Baker Hughes were trading lower on Tuesday morning, off just about two percent. For MarketNewsVideo.com, I'm Angela Salvucci.

Source: Market News Video (Sep 29, 2009 - 12:52 PM EDT)