Baker Hughes: The New Baker Hughes Looks Better Than Ever - But Fairly Valued

Baker Hughes Company remains a Hold, as its current valuation closely matches a conservative fair value despite strong operational performance. BKR's recent Chart Industries acquisition and asset sales support targeted deleveraging to 1.0x–1.5x net debt/EBITDA within 24 months. Near-term boosts from Middle East tensions and AI-driven power demand could reverse, introducing volatility and potential headwinds. BKR expects modest revenue and Adj. EBITDA beats versus midpoints, but I remain cautious given macro and sector-specific uncertainties. Back when I last covered Baker Hughes Company (BKR), I reiterated its Hold rating, arguing how “Record Backlog, Iran Tailwinds, And AI Exposure Aren't Enough,” as the same tailwinds that offered a boost can come back as headwinds.