Baker Hughes stock rating reiterated at Buy by Stifel after strong Q2

Published 23/07/2025, 13:24
Baker Hughes stock rating reiterated at Buy by Stifel after strong Q2

Investing.com - Stifel has reiterated its Buy rating and $49.00 price target on Baker Hughes (NASDAQ:BKR), a $39.65 billion energy technology company trading at a P/E of 13x, following the company’s second-quarter 2025 financial results. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value metrics.

Baker Hughes delivered second-quarter results that exceeded analyst expectations, with adjusted EBITDA surpassing Stifel’s forecast by 10.6% and consensus estimates by 8.5%. The strong performance was supported by a 3.5% revenue beat and better-than-anticipated margin expansion, building on the company’s impressive $27.84 billion in trailing twelve-month revenue and perfect Piotroski Score of 9.

The company’s Industrial & Energy Technology (IET) segment showed robust order intake despite no major LNG awards during the quarter, demonstrating the strength and versatility of Baker Hughes’ portfolio. This included approximately $550 million in orders related to data centers.

Baker Hughes also raised its full-year 2025 IET revenue and EBITDA guidance, increasing it by 3.7% compared to Street estimates, while re-establishing Oilfield Services & Equipment (OFSE) guidance that aligns with consensus forecasts.

The company’s third-quarter 2025 guidance suggests potential upside to current market forecasts, and Baker Hughes has continued its robust cash returns to shareholders, according to Stifel’s analysis.

In other recent news, Baker Hughes Company reported second-quarter results that surpassed analyst expectations. The company achieved adjusted earnings per share of $0.63, exceeding the projected $0.56 by analysts. Revenue for the quarter was $6.91 billion, which was above the consensus estimate of $6.63 billion, although it marked a 3% decrease from $7.14 billion in the same period last year. Adjusted EBITDA rose by 7% year-over-year to $1.21 billion, with margins improving by 170 basis points to 17.5%. These results highlight Baker Hughes’ ability to maintain strong financial performance despite a slight decline in revenue. The company’s recent earnings announcement has drawn attention from investors and analysts alike.

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