Baker Hughes (BKR) is poised for strong multiyear growth and margin expansion following Q3 results that exceeded expectations on key metrics including adjusted EBITDA, Industrial & Energy Technology orders, and free cash flow, RBC Capital Markets said in a note emailed Thursday.
The company booked $5.9 billion in IET orders, exceeding RBC’s expectations, and raised its 2026 and Horizon 2 order targets by $4 billion and $5 billion, respectively, to $22.5 billion and more than $50 billion, according to the note.
Given the solid performance in 2026, the rest of Horizon 2 order guidance suggests a downward trajectory for 2027/2028, raising concerns that Baker Hughes has reached peak orders, the brokerage said. However, RBC believes these concerns are overblown.
The company expects each segment to grow at low-mid single digit rates in 2027, implying overall revenue of about $32.7 billion for the year, compared with consensus of $32.6 billion, the brokerage said.
RBC kept an outperform rating on Baker Hughes and lowered its price target to $70 from $71.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
