Morgan Stanley analyst Daniel Kutz has maintained their bullish stance on BKR stock, giving a Buy rating yesterday.
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Daniel Kutz has given his Buy rating due to a combination of factors that highlight Baker Hughes Company’s strong performance and growth potential. Despite facing challenges such as tariff headwinds and a difficult global macroeconomic environment, Baker Hughes has managed to increase its fiscal year 2025 guidance for revenue and EBITDA. The company’s second-quarter orders rose significantly, contributing to a record backlog, which demonstrates the robust demand for its products and services.
Furthermore, the company’s traditional energy markets, including gas, LNG, and oil, continue to drive demand for its equipment. Notably, there has been a significant increase in new energy orders, with Baker Hughes expecting to exceed its high-end target for 2025. This growth is supported by opportunities in distributed power solutions, particularly in data center-related orders. The company’s strategic investments in enhancing its turbine capabilities further underscore its commitment to meeting rising demand. Overall, these factors contribute to a positive outlook for Baker Hughes, justifying the Buy rating.