Baker Hughes (NYSE:BHI) International Margins Should Improve in 2011

Based on the expectation Baker Hughes (NYSE:BHI) is going to widen their international margins, Goldman Sachs (NYSE:GS) sees them moving EPS up in the near future.

Goldman said, "BHI has the lowest international margins relative to peers but we expect this gap to narrow. While the stock has done well recently, it is one of the worst performers from the 2008 highs, and higher international margins should drive EPS revisions. 4Q earnings is the next catalyst; we are 10% above consensus (11%/4% above in 2011/2012)."

Goldman Sachs upgraded Baker Hughes from "Neutral" to "Buy." Baker closed at $56.60 on Friday, gaining $1.77, or 3.23 percent. Goldman has a price target of $70 on them.