JPMorgan has raised its price objective for Baker Hughes (NASDAQ:BKR) to $60.00 from $53.00 while retaining an Overweight rating on the oilfield services and energy technology company. At the time of the analyst action Baker Hughes traded near $56.29, a level roughly 1% shy of its 52-week high of $56.89, and sits on a year-to-date return of 23.61% according to InvestingPro data.
The bank pointed to broad-based order momentum within Baker Hughes’ Industrial & Energy Technology - IET - division, where strength was recorded across Power Systems, gas infrastructure, New Energy programs and digital products. JPMorgan highlighted that Power Systems orders reached $2.5 billion in 2025, exceeding the company’s LNG equipment orders, which totaled $2.3 billion.
JPMorgan also noted that roughly 85% of IET orders booked over the past two years originated from equipment other than LNG-related machinery. That mix, the bank said, helps address investor concerns about possible weakness in LNG equipment demand amid major global capacity additions, and supports a more diversified revenue base within IET.
Financially Baker Hughes exceeded expectations in the fourth quarter of 2025. The company reported adjusted EBITDA of $1.34 billion for the quarter, outpacing JPMorgan’s projection by 6% as higher-than-anticipated IET revenue and improved margins drove the beat. The IET top line alone came in about 10% ahead of the firm’s projections.
For the full year Baker Hughes produced $4.75 billion in EBITDA on total revenue of $27.73 billion. The company’s trailing price-to-earnings ratio stands at 18.57, a level JPMorgan described as reasonable in light of the firm’s growth prospects.
Management has launched a broad review of capital allocation, cost structure and operations with the stated aim of enhancing shareholder value. JPMorgan does not anticipate that this strategic review will reach a conclusion prior to the mid-year close of the planned Chart Industries merger.
Additional metrics published via InvestingPro indicate the company has increased its dividend for four consecutive years, posting dividend growth of 9.52% and currently yielding 1.63%. The firm is also described as operating with a moderate level of debt.
Quarterly earnings and revenue also topped consensus. Baker Hughes reported adjusted earnings per share of $0.78 for the fourth quarter of 2025 versus an expected $0.67, and generated $7.39 billion in revenue compared with a forecast of $7.07 billion.
Following the strong quarterly report, other analysts moved to raise targets on the stock. Stifel lifted its price target to $58 while maintaining a Buy rating, citing robust IET order flow. BMO Capital elevated its target to $65 from $55 and kept an Outperform rating, pointing to strong IET results and improved guidance for 2026 as central reasons for the change in view.
What this means in context
- Order diversification within IET - particularly stronger Power Systems bookings - is reducing Baker Hughes’ sensitivity to LNG equipment cycles.
- Recent quarterly results showed upside to analyst expectations across EBITDA, revenue and adjusted EPS, prompting price-target increases from multiple brokerages.
- Management’s capital-allocation and operational review signals a focus on shareholder returns, though conclusions are not expected before the Chart Industries merger closes mid-year.
Data and metrics referenced
- JPMorgan price target: $60.00 (previously $53.00) and Overweight rating.
- Share price cited: $56.29; 52-week high: $56.89.
- Year-to-date return: 23.61% (InvestingPro).
- Power Systems orders in 2025: $2.5 billion; LNG orders: $2.3 billion.
- Approximately 85% of IET orders in the past two years were non-LNG equipment.
- Fourth-quarter 2025 adjusted EBITDA: $1.34 billion; full-year EBITDA: $4.75 billion; full-year revenue: $27.73 billion.
- Fourth-quarter adjusted EPS: $0.78 vs expected $0.67; fourth-quarter revenue: $7.39 billion vs expected $7.07 billion.
- Dividend growth over four years: 9.52%; current yield: 1.63%.
- P/E ratio cited: 18.57.
Analyst reactions beyond JPMorgan
Stifel and BMO Capital both raised their price targets in the wake of the quarterly results, maintaining positions that reflect positive views on Baker Hughes’ Industrial & Energy Technology order strength and improved forward guidance for 2026.