In a report released today, Saurabh Pant from Bank of America Securities maintained a Buy rating on Baker Hughes Company, with a price target of $44.00.
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Saurabh Pant has given his Buy rating due to a combination of factors that highlight Baker Hughes Company’s strong performance and potential for future growth. The company reported impressive second-quarter results, with adjusted earnings per share and EBITDA significantly surpassing consensus estimates. This outperformance was driven by robust revenue and margin improvements in both the Industrial & Energy Technology (IET) and Oilfield Services & Equipment (OFSE) segments.
Baker Hughes also demonstrated strong order growth, particularly in the IET segment, which saw a 13% increase in orders without relying on large LNG awards. This was supported by a substantial data center award and strong gas infrastructure orders, indicating a diverse and expanding market presence. Despite a slight miss in free cash flow, the company’s solid execution, long-term growth prospects in IET, and commitment to shareholder returns through free cash flow and cash returns underpin the Buy rating.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $50.00 price target.