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Investing.com - BofA Securities has raised its price target on Baker Hughes (NASDAQ:BKR) to $190.00 from $186.00 while maintaining a Neutral rating on the stock. Currently trading at $42.85, Baker Hughes maintains a healthy financial profile with an InvestingPro Financial Health score of "GOOD" and a moderate P/E ratio of 14.94.
The price target increase aligns with broader analyst sentiment, as 12 analysts have recently revised their earnings estimates upward. According to InvestingPro data, analyst targets for the stock range from $37 to $58, reflecting varied opinions on the company’s growth potential. Get access to more detailed analyst coverage and 8 additional exclusive ProTips with an InvestingPro subscription.
BofA Securities noted that the company’s approach of using advertising and menu news to drive trial, combined with in-restaurant experience to increase frequency, mirrors strategies seen in other successful restaurant turnarounds.
The firm pointed to menu innovation, specifically highlighting ribs and a frozen margarita platform, as factors that should help support continued business momentum for Baker Hughes.
Despite the positive developments, BofA Securities observed that July trends showing double-digit increases in sales and traffic suggest a stabilization in the two-year trend, which may translate to more muted comparable sales as the company faces tougher comparisons in upcoming periods.
In other recent news, Baker Hughes completed its $540 million acquisition of Continental Disc Corporation, enhancing its pressure management solutions within the flow control market. This acquisition is expected to immediately benefit the company’s earnings, cash flow per share, and margins in its Industrial & Energy Technology segment. Additionally, Baker Hughes announced a significant $13.6 billion acquisition of Chart Industries, which is anticipated to expand its process technologies and equipment offerings. Following this announcement, Piper Sandler reiterated an Overweight rating on Baker Hughes with a price target of $50.00. BMO Capital also raised its price target for the company to $53.00, maintaining an Outperform rating, citing the acquisition’s positive impact on the Industrial Energy & Technology segment. UBS increased its price target to $46.00, maintaining a Neutral rating, and noted the strategic alignment of the acquisition with Baker Hughes’ focus on higher-margin revenues. Conversely, Seaport Global Securities downgraded Baker Hughes from Buy to Neutral after the Chart Industries acquisition announcement.
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