Baker Hughes: Record Backlog, Iran Tailwinds, And AI Exposure Aren't Enough

Baker Hughes (BKR) is rated Hold, as strong long-term potential is offset by a fully valued share price and macro risks. BKR reported robust Q1 results, record backlog, and significant portfolio transformation, including another major divestiture amid the pending Chart acquisition. Management targets FCF conversion near 50% of Adj. EBITDA by 2026 and aims to de-lever to 1.0x–1.5x net debt/EBITDA within 24 months post-acquisition.