Stifel has adjusted its valuation on Baker Hughes to $63.00 from $58.00, keeping a Buy rating on the industrial energy-services company. The move came after Stifel representatives attended Baker Hughes’ 2026 Annual Meeting in Florence, Italy, an event the firm said reinforced its constructive outlook for the business.
At the time of the update, Baker Hughes (NASDAQ: BKR) was trading at $56.04, approaching a 52-week high of $58.50. The stock has delivered a six-month return of 30.09%. Data indicate the share price sits near a fair valuation when assessed against a proprietary Fair Value model.
Stifel’s decision to raise the price target was driven in part by increased confidence in Baker Hughes’ IET segment. Conversations with management and customers at the Florence meeting led the analyst team to view the segment as diverse and highly differentiated - characteristics the firm says position the business for multi-year growth. Stifel specifically cited improved expectations for order flow, revenue progression and margin advancement within IET and opted to use the higher end of its valuation range when setting the new target.
During the visit, Stifel also conducted facility tours and reviewed demonstrations at the Solutions Fair, which the firm said illustrated the capabilities of Baker Hughes’ technology portfolio. Those on-site observations materially informed the analyst team’s assessment.
Financially, Baker Hughes reported $27.73 billion in revenue and $2.62 in earnings per share over the last twelve months. The company carries a market capitalization of $55.3 billion and an enterprise value-to-EBITDA multiple of 12.15. The firm has maintained dividend payments for nine consecutive years and increased its dividend for four straight years.
Operationally, recent contract awards have provided tangible evidence of demand for the company’s equipment and services. Baker Hughes secured multiple contracts to supply equipment for Wabash Valley Resources’ low-carbon ammonia fertilizer plant in West Terre Haute, Indiana, including compression equipment for hydrogen purification, ammonia and syngas processing, and CO2 injection pumps intended for permanent geological storage. In addition, Baker Hughes expanded its partnership with Hydrostor through a strategic technology solutions and equity agreement that may include up to 1.4 GW of equipment orders for Hydrostor’s core projects; this builds on a collaboration that began in 2019.
Market analysts at other firms have made similar adjustments to their valuations. TD Cowen raised its price target on Baker Hughes to $64 while maintaining a Buy rating, a move prompted by fourth-quarter EBITDA results that exceeded expectations and guidance for the first quarter and 2026 that was in line with forecasts. JPMorgan also lifted its price target to $60 and retained an Overweight rating, citing growth in the company’s Industrial & Energy Technology segment and diversified order strength in areas including Power Systems and gas infrastructure. JPMorgan noted that Power Systems orders reached $2.5 billion in 2025.
Stifel’s upgrade, along with peer adjustments, signals a stronger consensus among some sell-side analysts around Baker Hughes’ near-term outlook, driven by both reported financial results and visible order activity revealed at the annual meeting and through recent contract wins.
Context and implications
The revision in Stifel’s price target reflects a reassessment of the company’s growth trajectory anchored to the IET segment and bolstered by direct observation of technologies and operations. While the firm used the higher end of its valuation range to set the $63.00 target, other reputable analysts have set nearby targets, underscoring a narrower band of expectations among sell-side research.