Analyst Kurt Hallead of Benchmark Co. maintained a Buy rating on Baker Hughes Company (BKR – Research Report), boosting the price target to $57.00.
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Kurt Hallead has given his Buy rating due to a combination of factors that indicate strong future performance for Baker Hughes Company. Notably, the company is experiencing a growing backlog and visible EBITDA growth, which is further supported by its efficient free cash flow generation and a proactive shareholder distribution program. These factors, along with the potential for a multiple re-rating, make the stock an attractive long-term investment.
Moreover, Hallead highlights Baker Hughes’ robust Gas Infrastructure and LNG project pipeline, which is expected to significantly drive orders and support the company’s ambitious margin targets. The company’s strategic positioning in the New Energy segment and its capital allocation program, which focuses on converting a substantial portion of EBITDA into free cash flow, further bolster his positive outlook. This strategic combination underpins Hallead’s confidence in the company’s ability to deliver solid returns, leading to his Buy recommendation.
Hallead covers the Energy sector, focusing on stocks such as Seadrill Limited, Halliburton, and Baker Hughes Company. According to TipRanks, Hallead has an average return of 1.6% and a 36.91% success rate on recommended stocks.
In another report released today, Wells Fargo also assigned a Buy rating to the stock with a $54.00 price target.