Market View: Baker Hughes Shows Resilience Amid Mixed Earnings
A Close-Up on Baker Hughes’ Performance and Analyst Ratings
Baker Hughes Company (BKR), based in Houston, Texas, specializes in oilfield products, services, and digital solutions. With a market capitalization of $42.6 billion, BKR stands as one of the world’s top oilfield service providers. The company’s offerings include drilling, well intervention, decommissioning, surface pressure control, composite pipe solutions for onshore projects, reservoir technology, and integrated well services.
Despite being a significant player in the energy sector, BKR’s stock has lagged behind the overall market over the past year. While BKR’s shares have increased by 24.4%, the broader S&P 500 Index ($SPX) has surged nearly 32.3%. In 2024, BKR’s stock is up 26.3%, compared to a 24.7% rise in the SPX year-to-date.
Looking more closely, BKR has outperformed the Energy Select Sector SPDR Fund’s (XLE) return of 11.9% over the past year and a 13.2% increase in 2024.
On October 22, Baker Hughes revealed its Q3 earnings, leading to a stock increase of 2.8% in the following trading session. The company managed to exceed earnings estimates but did not meet revenue expectations.
For the current fiscal year ending in December, analysts anticipate an EPS growth of 43.1%, projecting BKR will report $2.29 on a diluted basis. Notably, Baker Hughes has consistently beaten consensus earnings estimates for the past four quarters.
Among the 21 analysts assessing BKR stock, the consensus rating stands at “Strong Buy”, with 19 analysts recommending “Strong Buy,” one suggesting “Moderate Buy,” and one rating it as a “Hold.”
This is an improvement from last month when only 18 analysts called it a “Strong Buy.”
On November 14, Citigroup Inc. (C) analyst Scott Gruber raised Baker Hughes’ price target from $42 to $50, while keeping a “Buy” rating. The firm noted slight upside in 2025 EBITDA projections for Baker Hughes and TechnipFMC due to enhanced pricing and internal efficiency strategies. Meanwhile, SLB’s outlook remains uncertain, and Weatherford faces challenges tied to developments in Mexico and Saudi Arabia.
Currently, the mean price target for BKR is $44.40, representing a 2.8% premium over its present price levels. The highest price target on Wall Street is set at $53, which indicates a potential upside of 22.7%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
