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Investing.com - Piper Sandler has reiterated an Overweight rating on Baker Hughes (NASDAQ:BKR), currently trading at $43.72 with a P/E ratio of 14.94, with a price target of $50.00 following the company’s recent acquisition announcement. According to InvestingPro data, the company maintains a GOOD financial health score and offers a 2.11% dividend yield.
The research firm’s decision comes after Baker Hughes, with its substantial $42.9 billion market capitalization and $27.61 billion in revenue, revealed its $13.6 billion acquisition of Chart Industries (NYSE:GTLS), a global provider of process technologies and equipment for gas and liquid molecule handling across various industrial and energy markets. InvestingPro analysis shows the company is trading at a low P/E ratio relative to its near-term earnings growth.
Piper Sandler noted that this acquisition represents an acceleration in Baker Hughes’ transformation, creating a more robust company with broader exposure to high-growth sectors including LNG, data centers, gas infrastructure, metals and mining, CCUS, and nuclear.
The firm acknowledged its limited familiarity with Chart Industries but plans to conduct further research to fully understand how this transformative acquisition enhances Baker Hughes’ market position.
In its analysis, Piper Sandler highlighted the industrial logic behind the deal, examined the financial aspects, and suggested the acquisition could potentially add 20-30% value per share upside to its current $50 price target.
In other recent news, Baker Hughes reported better-than-expected earnings for the second quarter of 2025. The company posted an adjusted earnings per share of $0.63, surpassing the forecast of $0.56, and reported revenue of $6.91 billion, exceeding the projected $6.63 billion. Additionally, Baker Hughes announced the acquisition of Chart Industries, agreeing to pay $210.00 per share in an all-cash transaction, valuing the acquisition at $13.6 billion, including net debt. This acquisition has influenced various analyst reactions. BMO Capital raised its price target for Baker Hughes to $53.00, maintaining an Outperform rating, while UBS increased its price target to $46.00, maintaining a Neutral rating. In contrast, Seaport Global Securities downgraded the stock to Neutral following the acquisition announcement. Stifel also raised its price target to $50.00, citing strong quarterly results and a robust outlook. These developments reflect significant strategic moves by Baker Hughes in its industry.
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