Baker Hughes Company, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Saurabh Pant from Bank of America Securities maintained a Buy rating on the stock and has a $54.00 price target.
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Saurabh Pant has given his Buy rating due to a combination of factors that underscore Baker Hughes Company’s strong financial performance and promising future outlook. The company’s third-quarter results exceeded expectations, with adjusted EPS and EBITDA surpassing consensus estimates, driven by higher EBIT and a lower tax rate. Additionally, Baker Hughes demonstrated robust free cash flow and strong order growth, particularly in its Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE) segments, which outperformed market expectations.
Saurabh Pant also highlights the company’s strategic positioning for future growth. Baker Hughes has raised its guidance for 2025 IET orders and anticipates significant expansion in global LNG capacity by 2035. The company’s focus on production efficiency and cost management is expected to sustain margins despite some near-term challenges in the OFSE market. With a strong backlog and improving execution, Pant reiterates the Buy rating based on the long-term potential of the IET segment, steady operational performance, and strong free cash flow generation.
In another report released on October 16, Piper Sandler also maintained a Buy rating on the stock with a $52.00 price target.
BKR’s price has also changed moderately for the past six months – from $35.890 to $48.890, which is a 36.22% increase.