In the latest quarter, Baker Hughes (BKR, Financial) witnessed a remarkable order volume within its Industrial Energy Technology (IET) division, reaching $3.5 billion. This surge led to a record backlog, driven particularly by over $550 million in orders connected to data centers, despite the absence of large liquefied natural gas (LNG) contracts. The company remains optimistic about hitting its full-year order guidance for IET, bolstered by a strong first half and a positive outlook for the remainder of the year.
BKR has raised its annual revenue and EBITDA outlook for IET, while reinstating full-year guidance for its Oilfield Services and Equipment (OFSE) segment. This move reflects the company's strategy to counterbalance weaker sectors by leveraging IET's growth. Additionally, BKR executed three strategic transactions aimed at optimizing its portfolio, enhancing earnings stability and cash flow, and driving long-term shareholder value. By reallocating capital from non-core units to higher-margin prospects, BKR is aligning with its financial goals and strategic direction.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Baker Hughes Co (BKR, Financial) is $46.85 with a high estimate of $56.00 and a low estimate of $40.00. The average target implies an upside of 17.06% from the current price of $40.02. More detailed estimate data can be found on the Baker Hughes Co (BKR) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Baker Hughes Co's (BKR, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Baker Hughes Co (BKR, Financial) in one year is $37.40, suggesting a downside of 6.55% from the current price of $40.02. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Baker Hughes Co (BKR) Summary page.
