Baker Hughes (BKR) PT Raised to $53 at Goldman Sachs

Goldman Sachs analyst Ati Modak raised the price target on Baker Hughes (NASDAQ: BKR) to $53.00 (from $52.00) while maintaining a Buy rating.

The analyst comments "Following Q4 earnings, we are updating our estimates and reiterating our Buy rating. We believe continued share outperformance will be supported by idiosyncratic growth and margin expansion. We highlight the IET business where we believe the diversified portfolio lends itself to an attractive opportunity set. We specifically highlight growth opportunities driven by LNG orders, aftermarket services and new energy orders. In OFSE, while we are adjusting our estimates to reflect the softer macro environment, we believe BKR's production oriented business should support outperformance. We additionally continue to see upside to management's margin targets and highlight management commentary that the 20% targets are milestones rather than end targets. On capital returns, we expect management will achieve the 60-80% free cash flow payout target through a combination of dividends and opportunistic buybacks. We are additionally raising our price target from $52 to $53 and see 17% total returns from current levels."

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