Baker Hughes price target lowered to $37.50 from $39 at BofA

BofA lowered the firm’s price target on Baker Hughes to $37.50 from $39 and keeps a Buy rating on the shares. Baker is the “global LNG equipment leader” with 90%-plus market share in global LNG liquefaction, yet the firm notes 35% of IET revenue, or only 14% of Baker’s total revenue in FY23, came from the LNG end market. The U.S. DOE pausing review of export applications for new LNG projects “hurts but does not derail the BKR story,” though the firm now models IET orders of $11.6B in FY24, which is towards the low end of its $11.5B-$13.5B guidance, and it tempered its 2024 and 2025E adjusted EBITDA forecasts by 2% each.