BMO Capital Markets has raised its price target for Baker Hughes (NASDAQ: BKR) from $55.00 to $65.00. This adjustment was confirmed in a research note released on Tuesday, reflecting a positive outlook on the company’s stock. BMO Capital Markets currently maintains an “outperform” rating for Baker Hughes, indicating confidence in its potential growth.
Several other financial institutions have also provided insights into Baker Hughes in recent weeks. On December 29, Weiss Ratings reiterated a “buy” rating for the company. Shortly thereafter, TD Cowen reaffirmed its “buy” rating on January 7. Meanwhile, the Zephirin Group raised its price objective from $40.00 to $45.00 while assigning a “hold” rating. Similarly, Piper Sandler increased its target from $50.00 to $52.00, classifying Baker Hughes as “overweight.” Lastly, Susquehanna adjusted their target from $56.00 to $58.00 and provided a “positive” rating on January 7.
Overall, Baker Hughes has received endorsements from 21 equity research analysts, who have issued a “buy” rating, while two analysts have given the company a “hold” rating. According to data from MarketBeat, Baker Hughes currently boasts a consensus rating of “Moderate Buy” and an average price target of $57.58.
Recent Earnings and Financial Performance
Baker Hughes released its latest earnings report on January 25, 2024. The company reported earnings per share (EPS) of $0.78 for the quarter, outperforming analysts’ expectations of $0.67 by $0.11. The company achieved a net margin of 9.33% and a return on equity of 14.51%. Baker Hughes generated revenue of $7.39 billion, surpassing the anticipated $7.09 billion forecast by analysts. This represents a 0.3% increase in revenue compared to the same quarter last year when the company earned $0.70 per share.
Looking ahead, sell-side analysts project that Baker Hughes will report earnings of $2.59 per share for the current fiscal year.
Institutional Investments in Baker Hughes
Several institutional investors have adjusted their holdings in Baker Hughes recently. For instance, Woodline Partners LP increased its stake by 40.8% in the first quarter, now owning 83,650 shares valued at approximately $3.68 million. Focus Partners Wealth also raised its holdings by 5.6%, acquiring a total of 18,481 shares worth $812,000.
In the second quarter, Farther Finance Advisors LLC boosted its position by 15.1%, owning 7,996 shares worth $307,000. Additionally, V Square Quantitative Management LLC raised its holdings by 1.4%, acquiring 21,758 shares valued at $834,000. Truist Financial Corp increased its stake by 3.9%, now holding 386,710 shares worth approximately $14.83 million.
Currently, institutional and hedge fund ownership accounts for 92.06% of Baker Hughes’s stock, indicating strong institutional interest in the company.
Company Overview
Baker Hughes is an energy technology firm that offers a comprehensive range of products and services for the oil and gas sector, as well as industrial markets. Its portfolio includes oilfield services and equipment encompassing drilling, evaluation, completion, and production technologies. The company also provides turbomachinery, compressors, and related equipment for both midstream and downstream operations.
With a legacy dating back to the merger of Baker International and Hughes Tool Company, Baker Hughes further expanded in 2017 by combining with General Electric’s oil and gas division. The company has since transitioned back to being an independent publicly traded entity.
As Baker Hughes continues to navigate the evolving energy landscape, its recent performance and analyst endorsements suggest a promising trajectory for the company in the near future.
