Baker Hughes: Raised Target and Buy Rating on Stronger-Than-Feared Outlook, 2026 Order Strength, and Chart Acquisition Upside

Citi analyst Scott Gruber assigned a Buy rating on Baker Hughes Company today and set a price target of $64.00.

Scott Gruber has given his Buy rating due to a combination of factors that point to a stronger-than-feared outlook for Baker Hughes. He highlights that the latest quarterly results exceeded EBITDA expectations and that management’s 2026 guidance indicates solid mid-single-digit organic EBITDA growth, countering prior concerns about slowing orders and limited profit expansion. A key element is the company’s order outlook for 2026, with projected inbound orders of about $14.5 billion, materially above prior expectations, supported by strong activity in power and gas infrastructure and steady LNG greenfield demand. Gruber also notes that this improved visibility leads him to raise his 2026 and 2027 EBITDA forecasts, reinforcing confidence in the earnings trajectory.
Additionally, the pending acquisition of Chart is viewed as a meaningful upside lever, initially through cost synergies and later via cross-selling and broader commercial benefits. He emphasizes that Baker Hughes’ portfolio is increasingly positioned to benefit from global energy growth and the diverse routes of the ongoing energy transition, enhancing its strategic appeal. Reflecting this stronger fundamental and strategic setup, Gruber raises his target price to $64, underpinned by a higher valuation multiple on both the IET and OFSE segments in line with sector re-rating. The implied upside to the current share price supports his Buy recommendation, given the combination of earnings growth, order strength, and multiple expansion potential.

In another report released today, Barclays also maintained a Buy rating on the stock with a $57.00 price target.