Should You Buy Baker Hughes Co (BKR) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
56.730
1 Day change
0.18%
52 Week Range
58.500
Analysis Updated At
2026/01/28
Buy now for a beginner long-term investor with $50k–$100k. The setup is supported by a strong uptrend (bullish moving averages), a fresh earnings-driven catalyst cycle, and broad-based analyst price target raises. While the stock looks overbought short-term (RSI very high and price nearing resistance), the fundamental/news flow and institutional buying tilt the risk-reward in favor of owning it now rather than waiting.
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Technical Analysis
Trend is bullish: SMA_5 > SMA_20 > SMA_200 confirms an established uptrend. MACD histogram is positive (0.713) but contracting, suggesting upside momentum is still present but cooling.
Short-term condition is stretched: RSI_6 = 83.27 signals overbought, which often precedes consolidation or a pullback.
Key levels: Pivot support ~53.46 (first meaningful support area); near-term resistance at R1 ~56.68 (current price 56.41 is close), then R2 ~58.67. This suggests limited near-term upside to the first resistance, but the broader trend remains upward.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment read: Options flow is bullish. Put/Call by volume is extremely low (0.08), indicating call-heavy trading today. Open interest put/call at 0.85 is slightly call-leaning (not euphoric, but positive).
Volatility: 30D IV ~32.74 vs historical vol ~35.77, with IV percentile ~70.8 (options relatively expensive vs much of the past year). This often coincides with heightened attention/catalysts (earnings/news) and suggests the market is pricing in more movement than usual.
Technical Summary
Sell
5
Buy
9
Positive Catalysts
- Earnings and guidance momentum: Q4 beat plus commentary that should “quell fears” on orders/revenue/EBITDA (per Citi).
- Multiple price target raises on 2026-01-27 (BMO to 65, Citi to 64, Susquehanna to 65, JPM to 60, etc.) reinforce improving Street confidence.
- Strategic partnership with Hydrostor (compressed air energy storage) with up to 1.4 GW of equipment orders for projects in the U.S. and Australia—supports the IET growth narrative.
- Investment plan: $3B data center investment over three years tied to rising electricity demand—potentially expands longer-cycle, higher-quality end-market exposure.
- Positioning/flows: Hedge funds are buying aggressively (reported buying amount up ~293% QoQ).
Neutral/Negative Catalysts
- Short-term technical stretch: RSI overbought and MACD momentum cooling; price is also near first resistance (~56.68), increasing odds of a near-term pause.
- Mixed YoY profit optics: Latest quarter shows net income and EPS down ~25% YoY, which can cap multiple expansion if it persists.
- Some macro/news-driven optimism may be ahead of reality (e.g., Venezuela-related investment hopes noted by analysts as potentially slow/uncertain).
Financial Performance
Latest quarter: 2025/Q4.
- Revenue: $7.386B, +0.30% YoY (stable/slightly growing top line).
- Net income: $876M, -25.70% YoY.
- EPS: $0.88, -25.42% YoY.
- Gross margin: 23.73%, +9.00% YoY (clear margin improvement despite lower YoY earnings).
Interpretation: The quarter shows improving profitability at the gross margin level and strong operational narrative (record adjusted EBITDA reported in news, plus strong free cash flow in Q4), but bottom-line YoY declines mean the market will want continued execution and follow-through on 2026 outlook and synergy capture (e.g., Chart acquisition).
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend is decisively positive: a wave of Buy/Outperform/Overweight reiterations with higher price targets clustered on 2026-01-27 after the Q4 beat (BMO 65, Citi 64, Susquehanna 65, JPM 60, Barclays 57, Stifel 58). UBS remains Neutral (PT 54) but also raised its target previously.
Wall Street pros view: improving IET demand/margins, strong orders, EBITDA upside from acquisition synergies, and reduced fear around order intake/2026 growth.
Wall Street cons view: some event-driven rallies may be overdone and certain macro/geopolitical outcomes (e.g., Venezuela investment timeline) could take longer than markets expect.
Influential/insider/political activity: No recent congress trading data available; insiders are neutral with no significant recent trend.
Wall Street analysts forecast BKR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKR is 55.17 USD with a low forecast of 52 USD and a high forecast of 61 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
Wall Street analysts forecast BKR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKR is 55.17 USD with a low forecast of 52 USD and a high forecast of 61 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 56.630
Low
52
Averages
55.17
High
61
Current: 56.630
Low
52
Averages
55.17
High
61
BMO Capital
Phillip Jungwirth
Outperform
maintain
$55 -> $65
AI Analysis
2026-01-27
New
Reason
BMO Capital
Phillip Jungwirth
Price Target
$55 -> $65
AI Analysis
2026-01-27
New
maintain
Outperform
Reason
BMO Capital analyst Phillip Jungwirth raised the firm's price target on Baker Hughes to $65 from $55 and keeps an Outperform rating on the shares after its Q4 earnings beat. The quarter demonstrated margin gains and strong demand across IET, Industrial & Energy Technology, end-markets, highlighted by meaningful power exposure, the analyst tells investors in a research note.
Citi
Buy
maintain
$61 -> $64
2026-01-27
New
Reason
Citi
Price Target
$61 -> $64
2026-01-27
New
maintain
Buy
Reason
Citi raised the firm's price target on Baker Hughes to $64 from $61 and keeps a Buy rating on the shares. Fourth quarter results and 2026 guidance should quell fears of falling order intake, stagnation in industrial and energy technology revenue and limited EBITDA growth, Citi told investors in a research note. The firm added that closing of the Chart acquisition offers further EBITDA upside via cost synergies initially and commercial synergies longer term.
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