Baker Hughes Company
Thesis
Baker Hughes is positioned to benefit from its installed base economics, which create a recurring, high-margin services stream that the market underappreciates. The company’s growth in Gas Technology Services and the integration of Chart Industries will shift its earnings mix towards higher-quality, less cyclical revenue, with a projected price target of $108/share, implying 63% upside through 2028.
Did it work?
The stock price has increased by 90% since the pitch, significantly exceeding the projected upside of 63% through 2028. This strong performance aligns with the thesis that Baker Hughes would benefit from its installed base economics and a shift towards higher-quality revenue streams. Given that 28 months is a substantial portion of the time frame leading to 2028, the thesis can be considered successful.
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