UBS lowers Baker Hughes stock price target to $70 on GTLS margins

UBS has reduced its price target on Baker Hughes stock to $70 from $71, maintaining a Neutral rating on the company. The reduction in target price is primarily due to Baker Hughes' initial assessment of GTLS (Gas Turbine Load Sharing) within its portfolio, which came in below expectations. Despite this, UBS still sees long-term investment potential in GTLS, with margin expansion projected to increase from 17% to 22.1% over the next few years.

UBS expects the integration of GTLS to provide 8.5% accretion to adjusted earnings per share in fiscal year 2027 and 11.8% in fiscal year 2028. The stock currently trades at $60.80, with a market capitalization of $60.43 billion, and has shown a 41% year-to-date return.

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