In a report released today, Marc Bianchi from TD Cowen maintained a Buy rating on Baker Hughes Company, with a price target of $64.00.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Marc Bianchi has given his Buy rating due to a combination of factors that underscore Baker Hughes’ solid operational performance and improving outlook. The company once again exceeded its quarterly EBITDA guidance, extending a multiyear pattern of consistent outperformance, and it delivered particularly strong results in its Industrial & Energy Technology (IET) segment. Forward guidance for 1Q and 2026, while only modestly above consensus, was better than feared by the market, and was supported by robust order momentum, especially in LNG, FPSOs, gas infrastructure, and power-related projects, including meaningful exposure to data centers. In addition, Baker Hughes highlighted growing New Energy awards, with most of that activity expected to benefit the IET business, reinforcing the company’s positioning in energy transition and higher-growth markets.
Another key element behind the Buy rating is the company’s strong free cash flow performance and improving tax profile, which together support a healthier conversion of EBITDA into cash. The pending GTLS acquisition remains on track, with management expressing increased confidence in realizing substantial cost synergies and pursuing additional quick-return efficiency measures. These drivers contributed to upward revisions in Bianchi’s EBITDA estimates for 2026 and beyond, reflecting stronger exit rates and higher IET orders. Incorporating these improved assumptions, his discounted cash flow analysis yields a higher price target of $64, implying a valuation of roughly 13x his 2026 EBITDA forecast and justifying a constructive stance on the shares.
Bianchi covers the Energy sector, focusing on stocks such as Baker Hughes Company, Schlumberger, and Halliburton. According to TipRanks, Bianchi has an average return of 1.8% and a 46.96% success rate on recommended stocks.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $59.00 price target.