Baker Hughes Analyst Ratings Show Positive Momentum

Analysts are bullish on Baker Hughes's stock, with recent ratings reflecting confidence in its prospects. Following a solid increase in revenue growth, investors may see positive trends in the company's stock price.

Date: 03-01-2025

AI Rating: 7

Baker Hughes's Analyst Ratings: The analysis indicates a mix of bullish and somewhat bullish sentiments from analysts regarding Baker Hughes's stock (BKR). Out of 13 analysts, 5 are bullish and 8 are somewhat bullish, signaling a generally positive outlook, albeit with caution.

Price Targets: Analysts have provided an average 12-month price target of $47.0 for Baker Hughes, which shows an increase of 8.15% from the prior average of $43.46. The highest estimate reaches $52.00, suggesting analysts anticipate significant upside potential.

Revenue Growth: The report mentions a revenue growth rate of 4.02% as of September 30, 2024. Although positive, it is noted that this growth lags behind industry peers, which could create concerns among investors about competitiveness within the energy sector.

Net Margin: Baker Hughes's net margin is reported at 11.09%, which exceeds industry averages, indicating strong cost management and profitability practices.

Return on Equity (ROE): The company also enjoys a high ROE of 4.82%, exceeding industry standards. This metric illustrates effective utilization of equity capital and suggests sound financial management, further boosting investor confidence.

Debt Management: Baker Hughes maintains a more conservative financial approach with a debt-to-equity ratio of 0.37, which is below industry averages, reflecting lower dependency on debt financing. This balanced approach can enhance the company’s stability and attractiveness to investors.

Overall, despite some concerns regarding its revenue growth relative to peers, Baker Hughes's solid net margin and ROE provide a robust framework for potential stock price appreciation, making it a noteworthy candidate within the S&P 500.

Stocks: BKR