Stifel has raised its price target on Baker Hughes (NASDAQ:BKR) to $58.00 from $57.00 while retaining a Buy rating, citing the company’s solid fourth-quarter 2025 results and guidance that exceeded analyst expectations. The stock was trading at $56.29, close to its 52-week high of $56.89, and the company’s market capitalization stood at about $55.6 billion.
Analysts at Stifel pointed to stronger-than-expected performance across the business and particularly highlighted robust order flow in the Industrial & Energy Technology - IET - segment. Management provided guidance for the first quarter and full year 2026 that came in ahead of consensus, supporting the firm’s view that Baker Hughes is progressing toward its IET margin target of approximately 20% for 2026.
Stifel also noted that margins in the Oilfield Services & Equipment - OFSE - division have remained resilient in the face of some headwinds. The firm attributed margin protection in part to ongoing cost-reduction actions that the company continues to pursue.
The research note emphasized expanding opportunities in Baker Hughes’ power systems business. For full-year 2025 the company recorded $2.5 billion in power systems orders, of which about $1 billion were related to data center applications. Stifel linked that demand to rising power needs from data centers and cited the backlog as one factor behind the stock’s strong 32% price return over the last year.
Balance-sheet discipline remains a stated priority for the company. Baker Hughes said it will continue to emphasize deleveraging once its acquisition of Chart closes, a transaction that management expects to complete in the second quarter of 2026. The company has maintained dividend payments for nine consecutive years and currently offers a dividend yield of 1.63%.
Quarterly results provided concrete backing for the analyst attention. In Q4 2025 Baker Hughes reported adjusted earnings per share of $0.78, ahead of the $0.67 consensus estimate. Revenue for the quarter came in at $7.39 billion versus a projected $7.07 billion. Management’s stronger guidance for 2026 and the performance in the IET segment drove additional analyst interest.
In related analyst action, BMO Capital raised its price target on Baker Hughes from $55 to $65 and kept an Outperform rating. BMO pointed to the company’s strong IET performance and improved 2026 guidance as the rationale for its higher target.
Investors continue to weigh these developments alongside the company’s stated priorities of margin expansion, cost control and balance-sheet repair. Market participants tracking the stock will also be monitoring progress on the Chart acquisition and how the company converts its power systems backlog into revenue and earnings growth.
Note: This article reports on analyst ratings, company results and guidance as disclosed by Baker Hughes and the referenced brokerages. It does not introduce additional data beyond those disclosures.