Baker Hughes Company (BKR – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Saurabh Pant from Bank of America Securities maintained a Buy rating on the stock and has a $40.00 price target.
Saurabh Pant has given his Buy rating due to a combination of factors including the Baker Hughes Company’s recent financial performance and future prospects. In the first quarter, Baker Hughes, denoted as BKR, surpassed consensus and Bank of America estimates for adjusted EBITDA, primarily driven by strength in its Industrial & Energy Technologies (IET) sector. This outperformance was reflected in areas such as Gas Tech – Equipment sales, which, despite a flat quarter-over-quarter performance, contributed to a margin increase year-over-year. Additionally, a significant free cash flow beat was achieved, thanks to favorable working capital changes, which in turn facilitated robust shareholder returns through share repurchases.
Moreover, Pant acknowledges the company’s disciplined execution, evidenced by the IET sector’s margin improvement and effective backlog management. Despite a slight underperformance in total orders and a modest outlook for 2024, BKR’s ability to generate strong free cash flow and maintain a consistent shareholder return policy bolsters confidence in its operational capabilities. Pant’s Buy rating also reflects an appreciation for the IET’s potential, which has been underestimated by the market, and BKR’s recent underperformance compared to the PHLX Oil Service Sector (OSX) suggests there is room for a re-rating as investor confidence grows in light of BKR’s strong execution.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $43.00 price target.
BKR’s price has also changed slightly for the past six months – from $34.670 to $33.000, which is a -4.82% drop .
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Baker Hughes Company (BKR) Company Description:
Texas-based Baker Hughes Co. provides a portfolio of technologies and services worldwide. The company operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS).
Read More on BKR:
- Baker Hughes Company Sparks Interest with Informal Update
- Baker Hughes Declares Quarterly Dividend
- Baker Hughes Awarded Significant Gas Technology Scope for Phase 3 of Saudi Arabia’s Master Gas System
- Baker Hughes reports U.S. rig count up 2 to 619 rigs
- Baker Hughes price target raised to $40 from $37.50 at BofA
