BKR Stock Forecast & Price Target

Baker Hughes is positioned favorably due to anticipated revenue growth and margin expansion across both its Industrial and Energy Technology (IET) and Oilfield Services and Equipment (OFSE) segments, driven by increased industry utilization and demand for services. The firm's new energy orders of $1.3 billion, reflecting a substantial 70% year-over-year increase, are projected to grow further to a range of $1.4-1.6 billion by 2025, highlighting its strong market potential. Additionally, the company demonstrated robust performance with earnings surpassing estimates and an upward revision of its 2025/2026 EBITDA forecasts, reinforcing its positive outlook as it continues to enhance shareholder returns through increased dividends.

Baker Hughes faces a challenging outlook, with global upstream spending anticipated to decrease slightly year-over-year, particularly in North America, where a decline of mid-single digits is expected. The company's industrial and energy technology segment, along with the oilfield services and equipment segment, may experience lower revenues and margins due to reduced drilling and completion activities, particularly in key markets such as Mexico and Saudi Arabia. Additionally, potential risks including reduced industry activity, capital investment not meeting return metrics, and increased regulation may further hinder Baker Hughes's financial performance and overall growth prospects.