Key Stats for BKR Stock
- Last-6-Month Performance: 22%
- 52-Week Range: $34 to $67
- Valuation Model Target Price: $68
- Implied Upside: 18%
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What Happened?
Baker Hughes stock has risen about 22% in the last 6 months, recently trading near $57 per share, as investors have increasingly focused on energy infrastructure companies benefiting from strong LNG demand and rising electricity consumption tied to data centers and AI infrastructure.
The stock has moved higher primarily because Baker Hughes is delivering record orders and backlog growth tied to LNG projects and power systems, which improves earnings visibility and supports more stable, long-term profit growth.
The company reported fourth quarter adjusted EBITDA of $1.34 billion and EPS of $0.78, contributing to a record full-year EBITDA of $4.83 billion, while CEO Lorenzo Simonelli said the company “continued to execute at a high level.”
Its Industrial & Energy Technology segment, which includes LNG equipment used in export terminals and power systems that generate electricity for industrial and data center use, drove results with record orders of $14.9 billion and backlog reaching $32.4 billion, including $2.5 billion in power systems orders with $1 billion tied to data centers.
This trend is also visible across the industry, with competitors such as Schlumberger and Halliburton benefiting from stronger international energy investment and oilfield activity.
However, Baker Hughes is more differentiated through its exposure to LNG infrastructure and power systems, which are tied to long-term electricity demand rather than shorter-cycle drilling activity.
Recent institutional filings showed active positioning across major investors. Sei Investments increased its stake by 9.6% to about 3.4 million shares, while Bank of Montreal raised its position by 23.8% to about 1 million shares, and Aristotle Atlantic Partners initiated a new position worth about $12 million.
At the same time, BNP Paribas cut its stake by 42.2%, Clearline Capital reduced its position by 22.7%, and Aventail Capital trimmed its holdings by 72.8%, indicating portfolio rebalancing rather than a clear shift in sentiment.
Insider activity has also been closely watched, with CEO Lorenzo Simonelli selling about $33 million worth of shares in early March, reducing his stake by roughly 24%, though investors remain focused on strong backlog, LNG demand, and data center-driven power growth heading into 2026.
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Is BKR Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 2%
- Operating Margins: 14%
- Exit P/E Multiple: 21x
Revenue growth is expected to remain steady, supported by LNG infrastructure buildout and gas services, as countries expand export capacity and energy networks to meet rising global demand.
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Margin expansion is driven by a shift toward higher-value segments such as turbomachinery and digital solutions, which generate more recurring and higher-margin revenue compared to traditional drilling-related services.
This means future performance depends less on oil price cycles and more on backlog execution, long-term service contracts, and pricing discipline across infrastructure projects.
Based on these inputs, the model estimates a target price of $68, implying about 18% upside, indicating the stock appears modestly undervalued at current levels.
Over the next year, growth is expected to be supported by continued LNG project approvals, rising electricity demand from data centers and AI infrastructure, and expansion across international and offshore markets, all of which drive equipment orders and long-term service revenue.
At current levels, Baker Hughes appears modestly undervalued, with future performance driven by energy infrastructure demand, backlog conversion, and margin improvement rather than cyclical oilfield recovery.
How Much Upside Does BKR Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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