Arun Jayaram, an analyst from J.P. Morgan, maintained the Buy rating on Baker Hughes Company. The associated price target remains the same with $48.00.
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Arun Jayaram has given his Buy rating due to a combination of factors that highlight Baker Hughes Company’s strong market position and growth potential. The company is expected to show solid performance in its Industrial & Energy Technology (IET) segment, with a projected increase in revenue and EBITDA, driven by robust demand for LNG and gas turbine orders. This segment’s growth is further supported by Baker Hughes’ strategic involvement in data center solutions, which is anticipated to enhance its order book.
Additionally, despite some challenges in the Oilfield Services & Equipment (OFSE) segment, particularly in North America, Baker Hughes has demonstrated resilience through its diverse production mix and international market strength. The company’s focus on cost management and portfolio transformation under new leadership is expected to preserve margins and drive future growth. These strategic initiatives, combined with a favorable valuation based on a mid-cycle multiple, underpin Jayaram’s positive outlook and Buy rating for Baker Hughes.
In another report released on June 30, Wells Fargo also reiterated a Buy rating on the stock with a $50.00 price target.