BofA Securities raised its price target on Baker Hughes (BKR) to $65.00 from $55.00 and left its Buy recommendation intact, citing fresh perspective gained while attending the company's 2026 Annual Meeting in Florence, Italy. The new target implies upside from a recent share price of $56.04, which the company is trading close to its 52-week high of $58.50.
The broker's reassessment followed direct access to Baker Hughes' management, manufacturing facilities and key customers at the annual meeting, allowing analysts to refine their view of the company’s Industrial & Energy Technology (IET) segment. BofA emphasized that IET is expanding well beyond liquefied natural gas (LNG) into higher-growth areas including gas compression, clean energy, industrial technology and power systems.
Concrete order trends underpin that view: non-LNG Equipment orders grew at a compound annual growth rate of 21% from 2023 to 2025 and accounted for roughly 85% of total IET orders in 2024/2025. Those shifts in the order mix were cited as a key reason for the more constructive outlook and the higher price target.
Financial stability and shareholder returns were also noted. Baker Hughes has maintained dividend payments for nine consecutive years and currently yields 1.64%, reflecting a combination of cash return to shareholders alongside ongoing investment in growth initiatives. The company’s reported price-to-earnings ratio is 21.82, and it has produced strong returns over multiple timeframes, while year-to-date performance has been notable, with the stock up roughly 23%.
Baker Hughes has drawn attention to its Power Systems business as a major long-term opportunity. Management characterizes that market as exceeding $100 billion of annual potential by 2030. By comparison, the company expects orders of about $2.5 billion in 2025 in Power Systems, and it estimates a roughly $25 billion total addressable market for behind-the-meter power. Those figures were highlighted by the broker as supporting a longer-duration growth case tied to electrification and distributed power demand.
Other broker reactions to Baker Hughes’ recent results and the annual meeting have been supportive. After the company reported fourth-quarter EBITDA above expectations, TD Cowen raised its price target to $64 from $55 and maintained a Buy rating. Stifel similarly nudged up its target to $63 from $58 and kept a Buy recommendation, citing positive impressions from the same company meeting.
Operationally, Baker Hughes has continued to win industrial contracts and expand strategic partnerships. The company secured multiple orders to provide equipment for Wabash Valley Resources’ low-carbon ammonia fertilizer production plant in Indiana, including compression equipment for hydrogen purification and CO2 injection pumps for geological storage. Separately, Baker Hughes deepened its alliance with Hydrostor through a technology and equity agreement that contemplates up to 1.4 GW of equipment orders for energy storage projects. That collaboration is set to integrate Baker Hughes’ technology into Hydrostor’s compressed air energy storage solution.
Taken together, the order trends, the company’s reported valuation metrics, steady dividend history and the pipeline of contracts and partnerships formed the basis for BofA’s higher target and continued Buy stance. The firm’s attendance at the annual meeting provided analysts with direct exposure to management’s strategy and operational execution across the IET portfolio.
Data points noted in this report:
- BofA price target: raised to $65.00 from $55.00; Buy rating maintained.
- Current share price referenced: $56.04; 52-week high: $58.50.
- Year-to-date return: approximately 23%.
- Non-LNG Equipment orders CAGR 2023-2025: 21%; accounted for ~85% of total IET orders in 2024/2025.
- Dividend history: paid for nine consecutive years; current yield 1.64%.
- Power Systems: company projects market opportunity >$100 billion annually by 2030; expects $2.5 billion in orders in 2025; estimates ~$25 billion TAM for behind-the-meter power.
- P/E ratio: 21.82.
- Other broker moves: TD Cowen PT to $64 from $55; Stifel PT to $63 from $58 - both maintained Buy ratings.
- Notable contracts and partnerships: equipment for Wabash Valley Resources’ low-carbon ammonia plant; up to 1.4 GW of potential equipment orders via Hydrostor technology and equity agreement.
These facts reflect the recent communications and order announcements from Baker Hughes and subsequent analyst reactions. The combination of shifting order mix within IET, targeted growth areas in Power Systems and active industrial contracts and collaborations contributed to the revised view from BofA and other brokers.