Jpmorgan Forecasts A Solid Q2 For Baker Hughes

last updated on

Jpmorgan Forecasts A Solid Q2 For Baker Hughes

JPMorgan Forecasts A Solid Q2 For Baker Hughes

Baker Hughes, which is a prominent oil field service company, has recently received a positive forecast from JPMorgan. According to JPMorgan, the price target for the Baker Hughes Company is set at $35, and the company is also expected to post strong Q2 results.

The analysts at JPMorgan believe that fears related to the seasonality factor during Q3 are overblown and not true at all. That's why JPMorgan has maintained an overweight rating on Baker Hughes.

$0.24 Forecast For 2nd Quarter EPS

The estimated EPS value for Baker Hughes during Q2 is around $0.34, with an EBITDA of $878mm. In addition, the analysts also pointed out how the operational momentum will remain solid, which will allow a $350mm worth of FCF during the quarter.

Overall, the oil field company appears to be well-positioned to achieve 2023's operational targets. Furthermore, the strength from the international markets and the IET also allow the company to close Q2 on a strong note.

Looking ahead, the IET strength will allow Baker Hughes to have fewer seasonality problems during the 3rd and 4th quarters. During this time period, the revenue will likely be close to the seasonal patterns.

For now, JPMorgan maintains the EBITDA estimates for Q3 & Q4 at $968mm & 1111mm. If we look around, the Wall Street analysts are also expecting the same numbers, which adds further credibility.

In the last few years, it has become clear that crude oil will continue to play an important role in energy generation and powering the economy. That's why it would be too soon to say that companies like Baker Hughes will have any problems related to sales or revenue.

For the most part, everyone agrees that a strong Q2 is very likely for Baker Hughes. However, there are some fears for Q3 and Q4, but that's still too soon to say anything. After all, what's about to happen in the Q3 and Q4 will become clear once we have the Q2 results.

Trending Stories