Jefferies Raises Baker Hughes Price Target to $58, Reiterates Buy Rating

Jefferies has raised its price target for Baker Hughes to $58 from $54 and maintains a Buy rating. The firm believes the acquisition of Chart Industries strengthens Baker Hughes' long-term positioning, and the deal price is reasonable with achievable synergies. Jefferies has updated its model to reflect the combined company.

Jefferies has recently updated its price target for Baker Hughes (NASDAQ: BKR) to $58, up from $54, while maintaining a Buy rating. The firm's bullish outlook is driven by the strategic acquisition of Chart Industries (NYSE: GTLS), which Jefferies believes will bolster Baker Hughes' long-term positioning. The deal price of $13.6 billion, including net debt, is considered reasonable, with achievable synergies projected to amount to $325 million annually over the next three years [2].

The acquisition, announced earlier this month, involves Baker Hughes paying $210 per share in an all-cash transaction, placing an enterprise value of $13.6 billion on Chart Industries. Jefferies expects the acquisition to increase the Industrial & Energy Technology (IET) division's share of consolidated EBITDA to around 60%, up from 50% currently. The broker also models revenue of $30.3 billion in 2026 and $33.9 billion in 2027, with EBITDA reaching $5.75 billion and $6.8 billion, respectively [2].

Chart Industries, a global leader in process technologies and equipment, generated $4.2 billion in revenue and $1.0 billion in adjusted EBITDA in 2024. The company's products and services are highly complementary to Baker Hughes' offerings, positioning the combined entity to provide end-to-end lifecycle solutions for customers across attractive growth markets [3].

Baker Hughes has been reporting strong financial results, with the company achieving an adjusted earnings per share (EPS) of $0.63 for the second quarter of 2025, surpassing expectations. Revenue also exceeded projections, reaching $6.91 billion against a forecast of $6.63 billion [1]. These positive developments have contributed to a positive outlook for the company.

References:
[1] https://au.investing.com/news/analyst-ratings/seaport-global-downgrades-baker-hughes-stock-to-neutral-on-chart-industries-acquisition-93CH-3948926
[2] https://www.marketscreener.com/news/baker-hughes-jefferies-raises-target-price-ce7c5fdfdc8af226
[3] https://www.indianchemicalnews.com/general/baker-hughes-to-acquire-chart-industries-for-136-billion-26971