BMO Capital analyst Phillip Jungwirth maintained a Buy rating on Baker Hughes Company yesterday and set a price target of $53.00.
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Phillip Jungwirth has given his Buy rating due to a combination of factors that highlight Baker Hughes’ strategic positioning and financial prospects. The acquisition of Chart Industries significantly enhances Baker Hughes’ Industrial Energy & Technology segment, which is expected to drive substantial growth and improve margins. This acquisition is projected to result in double-digit financial accretion across most metrics, supporting a higher valuation multiple over time. The deal also positions Baker Hughes favorably in high-growth markets such as LNG, gas power, and decarbonization, while expanding its reach into industrial gas, metals, and mining sectors.
Additionally, the financial outlook for Baker Hughes is promising, with expectations of significant earnings per share accretion by 2026, even before accounting for synergies. The company’s EBITDA margin is anticipated to improve, and leverage is expected to decrease within a manageable timeframe. The strong free cash flow and proceeds from divestitures further support the company’s ability to reduce debt and maintain financial flexibility. These factors, combined with Baker Hughes’ exposure to long-term energy transition opportunities and its strong balance sheet, underpin Jungwirth’s positive outlook and Buy rating.
In another report released today, Citi also maintained a Buy rating on the stock with a $54.00 price target.
BKR’s price has also changed slightly for the past six months – from $43.070 to $45.750, which is a 6.22% increase.