Baker Hughes price target raised to $53 from $46 at BMO Capital

Published 30/07/2025, 16:38
Baker Hughes price target raised to $53 from $46 at BMO Capital

Investing.com - BMO Capital raised its price target on Baker Hughes (NASDAQ:BKR) to $53.00 from $46.00 on Wednesday, while maintaining an Outperform rating on the stock. The energy technology company, currently trading at $45.67 and boasting a market capitalization of $45.1 billion, has shown strong momentum with a 22.4% return over the past year.

The price target increase follows Baker Hughes’ acquisition of Chart, which BMO Capital notes expands and complements the company’s Industrial Energy & Technology (IET) segment.

BMO Capital estimates that the pro-forma IET segment will represent approximately three-fourths of Baker Hughes’ total company EBIT, which the firm believes supports a higher valuation multiple over time.

The firm highlighted that the acquisition delivers double-digit financial accretion across most metrics, while noting that leverage increases from a low level given cash proceeds but remains manageable.

BMO Capital raised its estimates on Baker Hughes following the deal announcement, while maintaining its Outperform rating on the stock.

In other recent news, Baker Hughes reported strong financial results for the second quarter of 2025, with adjusted earnings per share of $0.63, surpassing the forecast of $0.56. The company also exceeded revenue expectations, reporting $6.91 billion compared to the projected $6.63 billion. This performance reflects robust order flow and better-than-expected guidance, which Stifel highlighted while raising its price target for Baker Hughes to $50 and maintaining a Buy rating. Additionally, UBS increased its price target to $46, noting that Baker Hughes’ combination with GTLS aligns with its strategic shift toward higher-margin revenues. However, Seaport Global Securities downgraded the stock from Buy to Neutral following Baker Hughes’ announcement to acquire Chart Industries (NYSE:GTLS). The acquisition involves an all-cash transaction of $210 per share, valuing Chart Industries at $13.6 billion, including net debt. These developments underscore Baker Hughes’ dynamic strategic maneuvers and financial performance in recent times.

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