Baker Hughes (BKR): Valuation in Focus Following Executive Change and Upcoming Earnings

Upcoming earnings from Baker Hughes (BKR), along with an executive leadership change, are in the spotlight this week. Investors are weighing what these updates might signal for the company’s future direction and value.

See our latest analysis for Baker Hughes.

Baker Hughes has kept the spotlight with its upcoming earnings report and a notable executive shift. Despite a slight pullback over the past month, recent momentum is positive, with an 11.4% year-to-date share price return and a strong 31.5% total shareholder return over the past year. Investors seem alert to both operational changes and the company’s long-term growth narrative.

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With shares trading at a noticeable discount to some analyst price targets, yet growth forecasts look subdued, the key question for investors is whether Baker Hughes is undervalued now or if the market is already factoring in future gains.

Most Popular Narrative: 10.6% Undervalued

Baker Hughes is trading at $46.28, while the most widely followed narrative values it near $51.75. This signals analysts see more upside than the market currently reflects.

Portfolio optimization, highlighted by recent divestitures and targeted acquisitions such as CDC, enables Baker Hughes to recycle capital into higher-growth, higher-margin, and less oil-price-sensitive segments. This structurally improves margins and sets up future EBITDA/earnings expansion.

Read the complete narrative.

Curious what powers this bullish outlook? The fair value leans on a model of steady top-line gains, margin durability, and rising earnings multiples. The real calculation behind that target might surprise you. Discover what assumptions have sparked analyst conviction about Baker Hughes’ next chapter.

Result: Fair Value of $51.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, unexpected oil price swings or further supply chain disruptions could challenge Baker Hughes’ growth path and put pressure on both revenue and profitability.

Find out about the key risks to this Baker Hughes narrative.

Build Your Own Baker Hughes Narrative

If you’ve got your own take on Baker Hughes or want to dig deeper into the numbers, building your own perspective is quick and easy. Often, it takes just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Baker Hughes.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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