Baker Hughes Company

BKR pitch long unknown

Thesis

Baker Hughes is transitioning from a cyclical oilfield services company to a higher-quality energy infrastructure and services platform. The market is undervaluing its durable infrastructure demand driven by LNG expansion and recurring high-margin services. With a 3-year target price of $108/share, this represents a 63% upside including dividends and a ~20% IRR.

Did it work?

inconclusive confidence: low

Only 4 months have passed since the pitch, which is less than one-sixth of the stated 3-year target horizon. The stock has appreciated by 2.7%, which is modest and could be considered normal market noise at this early stage. Therefore, it is too soon to determine if the thesis is playing out as expected.

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