BKR - Baker Hughes Could Be This Year's Turnaround Play
2024-03-05 19:01:35 ET
Summary
- Baker Hughes is focusing on turning around operations and creating a compelling story for the next megatrend in the oil and gas industry.
- The company is finding value in international markets, particularly in the Middle East and Asia, while domestic rig demand is declining.
- Baker Hughes is experiencing growth in LNG infrastructure, FPSO market, and new energy, which may drive future growth domestically and internationally.
Baker Hughes Company ( BKR ) is currently in the process of turning around operations and creating a compelling story for the next megatrend for O&G as well as the next generation of energy. Despite the challenges faced in the post-spinoff & Covid-era impediments to operations, Baker Hughes is proving their operating strength in maintaining their dominance in OFS. Similar to Schlumberger Limited (SLB), Baker Hughes is finding value across their international customers, primarily in the Middle East and Asia, while domestic rig demand continues to pull back due to higher production efficiencies. I provide BKR shares a BUY recommendation with a price target of $40.57/share at 9.98x eFY25 EV/EBITDA....
Baker Hughes Could Be This Year's Turnaround Play