Baker Hughes (NASDAQ:BKR) Stock Gets Price Target Reduction from Morgan Stanley

Key Points

• Morgan Stanley lowered Baker Hughes’ price target from $70 to $68 but maintained an “overweight” rating, implying roughly 24% upside from the $54.71 share price. Barclays and UBS also reduced their targets, while the analyst consensus remains “Moderate Buy” with a $71.43 target.
• Baker Hughes exceeded quarterly expectations, reporting $0.70 EPS and $8.03 billion in revenue versus estimates of $0.61 and $7.75 billion, respectively; revenue increased 14.5% year over year.
• AI infrastructure, data-center power and LNG demand are supporting growth, with the company securing a roughly 1.1-gigawatt technology order and raising its 2026 Integrated Energy Technologies orders outlook. Institutional investors own approximately 92% of the stock.

Baker Hughes (NASDAQ:BKR - Get Free Report) had its target price lowered by equities research analysts at Morgan Stanley from $70.00 to $68.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Morgan Stanley's target price suggests a potential upside of 24.29% from the stock's current price.

Several other research firms have also commented on BKR. Barclays dropped their price objective on shares of Baker Hughes from $72.00 to $62.00 and set an "equal weight" rating on the stock in a research note on Thursday. UBS Group cut their price target on Baker Hughes from $72.00 to $69.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 30th. Stifel Nicolaus lifted their price objective on Baker Hughes from $74.00 to $75.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. Wall Street Zen cut Baker Hughes from a "buy" rating to a "hold" rating in a report on Wednesday, August 5th. Finally, Zacks Research raised shares of Baker Hughes from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 16th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $71.43.

Baker Hughes Price Performance

Shares of BKR traded up $0.05 during midday trading on Thursday, hitting $54.71. 3,112,610 shares of the company traded hands, compared to its average volume of 8,658,504. The stock has a 50-day moving average of $58.48 and a 200-day moving average of $59.99. The company has a debt-to-equity ratio of 0.77, a current ratio of 2.09 and a quick ratio of 1.76. Baker Hughes has a one year low of $44.26 and a one year high of $70.41. The firm has a market cap of $54.31 billion, a P/E ratio of 17.67, a PEG ratio of 2.66 and a beta of 1.04.

Baker Hughes (NASDAQ:BKR - Get Free Report) last issued its quarterly earnings results on Tuesday, October 27th. The company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.09. The firm had revenue of $8.03 billion during the quarter, compared to analyst estimates of $7.75 billion. Baker Hughes had a return on equity of 13.85% and a net margin of 11.17%. The company's revenue was up 14.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.68 earnings per share. As a group, sell-side analysts predict that Baker Hughes will post 2.57 EPS for the current fiscal year.

Institutional Investors Weigh In On Baker Hughes

Large investors have recently bought and sold shares of the stock. NewEdge Advisors LLC raised its position in Baker Hughes by 152.3% in the second quarter. NewEdge Advisors LLC now owns 149,817 shares of the company's stock valued at $8,315,000 after purchasing an additional 90,427 shares during the last quarter. National Pension Service lifted its stake in Baker Hughes by 29.0% in the second quarter. National Pension Service now owns 1,867,731 shares of the company's stock valued at $103,659,000 after buying an additional 419,426 shares during the period. Hsbc Holdings PLC boosted its holdings in shares of Baker Hughes by 2.0% during the 4th quarter. Hsbc Holdings PLC now owns 1,892,101 shares of the company's stock worth $86,230,000 after buying an additional 37,473 shares in the last quarter. Fifth Third Bancorp grew its position in shares of Baker Hughes by 367.1% during the 1st quarter. Fifth Third Bancorp now owns 199,621 shares of the company's stock worth $12,187,000 after buying an additional 156,881 shares during the period. Finally, Allworth Financial LP increased its stake in shares of Baker Hughes by 19.5% in the 2nd quarter. Allworth Financial LP now owns 231,538 shares of the company's stock valued at $12,850,000 after acquiring an additional 37,814 shares in the last quarter. Institutional investors and hedge funds own 92.06% of the company's stock.

More Baker Hughes News

Here are the key news stories impacting Baker Hughes this week:

• Positive Sentiment: AI infrastructure demand is a major growth catalyst. Baker Hughes secured an approximately 1.1-gigawatt order from a major U.S. technology company for power-generation and cooling solutions, including turbines, generators, gearboxes and Chart dry coolers. Major U.S. Technology Company Selects Baker Hughes’ Power Generation and Cooling Solutions
• Positive Sentiment: Integrated Energy Technologies momentum improved. Management raised its 2026 IET orders outlook to $21.5 billion-$23.5 billion as data-center power and LNG demand strengthened the backlog. Third-quarter orders totaled $10.8 billion, while total remaining performance obligations reached a record $46.4 billion, including $39.4 billion in IET. BKR Q3 Earnings Call Raises IET Outlook as Backlog Builds
• Positive Sentiment: Baker Hughes also won a significant subsea production-systems and services contract from Eni for the Cronos gas development offshore Cyprus, booked in the third quarter. Baker Hughes Wins Subsea Award for Eni’s Cronos Gas Development
• Neutral Sentiment: Adjusted third-quarter EPS of $0.70 and revenue of $8.03 billion exceeded consensus estimates of $0.61 and $7.75 billion, respectively. The company also declared its regular $0.23-per-share quarterly dividend.
• Negative Sentiment: Despite the adjusted earnings beat, reported profit declined year over year, increasing concerns that near-term earnings are not fully reflecting the strong order momentum.
• Negative Sentiment: Barclays lowered its BKR price target from $72 to $62 and maintained an “equal weight” rating, signaling more limited upside expectations even though the new target remains above the current share price. Barclays Stock Recommendations

About Baker Hughes

Baker Hughes Company NASDAQ: BKR is an energy technology company that provides products, services and digital solutions for the oil and gas industry and other energy-related markets. Its offerings support the exploration, drilling, completion, production and maintenance of energy assets across the lifecycle of a project.

The company's oilfield services and equipment business provides technologies such as drilling systems, well completions, artificial lift, subsea equipment, production chemicals and well intervention services.

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