Baker Hughes stock price target raised to $46 by UBS on GTLS deal

Investing.com - UBS raised its price target on Baker Hughes (NASDAQ:BKR) to $46.00 from $43.00 on Wednesday, while maintaining a Neutral rating on the stock. The energy technology company, currently trading at $45.64 and near its 52-week high of $49.40, has demonstrated strong momentum with a 22.4% return over the past year. According to InvestingPro analysis, Baker Hughes maintains a GREAT financial health score.

The price target increase follows Baker Hughes’ combination with GTLS, which UBS views positively as it aligns with Baker Hughes’ strategic shift toward higher-margin life-cycle based revenues.

UBS noted that the transaction reduces cyclicality and supports long-term earnings growth for the energy technology company.

The firm highlighted that GTLS has approximately 27% FY26 adjusted EBITDA margins, which advances Baker Hughes ahead on its margin growth initiatives.

Despite the positive outlook, UBS expressed concerns about added leverage, reduced shareholder returns, and the integration timeline, noting that 2028 would be the first year to truly see the benefits of the integration.

In other recent news, Baker Hughes reported impressive earnings for the second quarter of 2025, with adjusted earnings per share of $0.63, surpassing the forecasted $0.56. The company also exceeded revenue expectations, reporting $6.91 billion compared to the projected $6.63 billion. This strong performance has been noted by analysts, with Stifel raising its price target for Baker Hughes to $50, maintaining a Buy rating due to the robust order flow and better-than-expected guidance. However, Seaport Global Securities downgraded Baker Hughes from Buy to Neutral following the company’s announcement to acquire Chart Industries (NYSE:GTLS). The acquisition deal involves Baker Hughes paying $210.00 per share in an all-cash transaction, valuing Chart Industries at an enterprise value of $13.6 billion, including net debt. These developments reflect significant strategic moves and financial performance for Baker Hughes.

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