Baker Hughes (BKR) Lands A New Power Deal, Is It Still Cheap?
Baker Hughes (BKR) is back on investor radars after announcing a new Power Frame Agreement with Venture Global and GE Vernova to support behind the meter power generation for LNG and potential data center projects.
The Baker Hughes share price jumped 4.18% on the day of the announcement to US$55.86, as investors reacted to the long-dated framework for up to 16 power island units and its link to LNG and potential data center demand. That move comes after some recent softness, with the 30-day share price return down 3.74% and the 90-day share price return down 2.43%, even though the year-to-date share price return sits at 18.50% and the 5-year total shareholder return is 149.82%. This suggests longer term holders have seen strong compounding while near term momentum has cooled.
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Baker Hughes now looks like a stronger industrial franchise riding LNG and power demand, yet the latest jump in the share price raises a sharper question. Are you paying up for quality or still getting it on sale?
Most Popular Narrative: 21% Undervalued
On the most followed narrative, Baker Hughes screens as undervalued, with a fair value estimate of $70.63 against the last close at $55.86. This puts the new LNG and power agreement into a bigger story about backlog and mix shift.
The company is building on its momentum in large technology driven orders, with Industrial & Energy Technology securing US$7.1b of orders in Q2 2026 and a 2.2x book to bill, which supports multi year revenue visibility and the potential for steadier earnings from a larger backlog.
See why 36 investors see Baker Hughes as 21% undervalued.
Result: Fair Value of $70.63 (UNDERVALUED)
Still, that 21% discount to fair value depends on Chart integration costs not dragging on cash flow, and on Middle East project risks staying contained rather than widening.
Find out about the key risks to this Baker Hughes narrative.
Next Steps
Positive narratives around Baker Hughes are useful, but your own judgment matters more. Move quickly and test the story against the 5 key rewards.
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