Citi Sticks with Buy on Baker Hughes (BKR) Despite Lowering Price Target

Baker Hughes Company (NASDAQ:BKR) is included among Billionaire Larry Robbins’ 10 Dividend Stock Picks.

Citi Sticks with Buy on Baker Hughes (BKR) Despite Lowering Price Target

On June 3, Citi lowered its price recommendation on Baker Hughes Company (NASDAQ:BKR) to $74 from $80. It reiterated a Buy rating on the stock. The revision came as the firm updated its models for companies in the oil and gas equipment and services sector.

During the Q1 2026 earnings call, Chairman, President, and CEO Lorenzo Simonelli said Baker Hughes continued to reshape its portfolio through a series of strategic transactions. He noted that the company had announced the divestiture of Waygate Technologies. Combined with the sale of PSI to Crane and the joint venture with Cactus, Baker Hughes expects these moves to generate about $3 billion in gross proceeds during 2026.

Simonelli also highlighted strong demand across the Industrial & Energy Technology (IET) segment and said the company has gained greater visibility into future growth. IET bookings reached a record $4.9 billion during the quarter, resulting in a book-to-bill ratio of 1.5x. The segment’s remaining performance obligations (RPO) climbed to a record $33.1 billion. Simonelli added that management has become increasingly confident that its Horizon 2 IET order target will exceed $40 billion.

Executive Vice President and CFO Ahmed Moghal echoed those remarks, saying Baker Hughes delivered another quarter of strong order growth. Total company orders reached $8.2 billion in the first quarter, including $4.9 billion from the IET segment.

Baker Hughes Company (NASDAQ:BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide.

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