Baker Hughes Company, the Energy sector company, was revisited by a Wall Street analyst today. Analyst Josh Silverstein from UBS reiterated a Hold rating on the stock and has a $48.00 price target.
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Josh Silverstein’s rating is based on several considerations surrounding Baker Hughes Company’s financial outlook and strategic moves. He acknowledges the company’s consistent performance, noting that Baker Hughes is expected to beat its EBITDA guidance for the 11th consecutive quarter. This consistent performance is a positive indicator, yet it is balanced by concerns about valuation and a softer return on capital profile, which tempers the overall enthusiasm for the stock.
Another factor influencing the Hold rating is the pending acquisition of GTLS, which is seen as a strategic move towards higher-margin, life-cycle based revenues. While this acquisition is viewed favorably for its potential to reduce cyclicality and support long-term earnings growth, the current valuation and market conditions warrant a cautious approach. Additionally, while the company’s financial estimates for the upcoming quarters are in line with expectations, the subdued upstream activity due to OPEC’s market dynamics and the lack of significant new orders in certain segments contribute to the Hold recommendation.
According to TipRanks, Silverstein is a 4-star analyst with an average return of 6.0% and a 54.39% success rate. Silverstein covers the Energy sector, focusing on stocks such as Chevron, Occidental Petroleum, and Schlumberger.