Baker Hughes (NASDAQ:BKR) received a significant boost from BMO Capital Markets, which raised its price target for the company from $55.00 to $65.00 in a research note issued on Tuesday. The brokerage currently holds an outperform rating for the stock, reflecting confidence in Baker Hughes’ future performance.
This adjustment follows a series of positive evaluations from various financial institutions. For instance, on January 7, TD Cowen reiterated a “buy” rating, while Weiss Ratings reaffirmed a similar stance on December 29, 2023. Additionally, Zephirin Group increased its price objective from $40.00 to $45.00, assigning a “hold” rating, and Piper Sandler raised its target from $50.00 to $52.00 with an “overweight” rating on October 16, 2023. Following these updates, Susquehanna also adjusted its target from $56.00 to $58.00, maintaining a positive outlook on the stock.
According to data from MarketBeat, a total of twenty-one equity research analysts have rated Baker Hughes with a Buy rating, while only two have issued a Hold rating. The consensus rating is categorized as “Moderate Buy,” with an average price target set at $57.58.
Strong Earnings Performance
Baker Hughes recently reported its earnings results on January 25, 2024, revealing a quarterly earnings per share (EPS) of $0.78. This figure surpassed analysts’ expectations, which had estimated an EPS of $0.67, marking a positive variance of $0.11. The company achieved a net margin of 9.33% and a return on equity of 14.51%.
The firm reported total revenue of $7.39 billion for the quarter, significantly exceeding the expected $7.09 billion. In the same period last year, Baker Hughes posted an EPS of $0.70, showing a year-over-year revenue growth of 0.3%. Analysts predict that Baker Hughes will average $2.59 EPS for the current fiscal year.
Institutional Investment Insights
Recent changes in institutional holdings indicate growing confidence in Baker Hughes among hedge funds and investment firms. For example, Woodline Partners LP increased its stake in Baker Hughes by 40.8% during the first quarter, acquiring an additional 24,225 shares to reach a total of 83,650 shares, valued at approximately $3.68 million.
Similarly, Focus Partners Wealth raised its holdings by 5.6%, owning 18,481 shares after purchasing 986 shares more. Farther Finance Advisors LLC and V Square Quantitative Management LLC also increased their positions by 15.1% and 1.4% respectively. Notably, Truist Financial Corp raised its holdings by 3.9%, acquiring an additional 14,621 shares.
Overall, institutional investors now own 92.06% of Baker Hughes stock, indicating strong institutional confidence in the company’s prospects.
Company Overview
Baker Hughes is a prominent energy technology firm that delivers a diverse array of products, services, and digital solutions tailored for the oil and gas sectors as well as industrial markets. The company’s offerings include oilfield services and equipment, such as drilling, evaluation, completion, and production technologies. Additionally, it provides turbomachinery and compressors used in midstream and downstream operations.
Established through the merger of Baker International and Hughes Tool Company, Baker Hughes further expanded in 2017 when it combined with General Electric’s oil and gas division. The company has since regained its status as an independent publicly traded entity, continuing to enhance its position in the energy technology landscape.
This week’s developments reflect an optimistic outlook for Baker Hughes, driven by strong earnings reports and increased institutional investments, suggesting a robust trajectory for the company in the coming months.
