TPAO, Baker Hughes sign Turkish geothermal cooperation deal

Impact · against what's priced in

The geothermal deal with TPAO is not a material catalyst for Baker Hughes. While positive, it is a small-scale cooperation agreement that does not meaningfully move the needle on the massive $37.1 billion backlog or the $45 billion Horizon 2 order outlook that currently drive the stock's valuation.

BKR+0.05

Challenges what's priced in

The price assumes

conversion of the record $37.1 billion Industrial & Energy Technology backlog into sustained revenue growth above 7%

The cooperation deal in Turkey provides a incremental growth vector in geothermal energy, supporting the growth trajectory the market currently declines to pay for, though the scale is likely negligible compared to the total IET backlog.

What BKR's price assumes · Sep 22

• BKR
• baker hughes
• energy deal
• geothermal
• renewable energy
• turkey

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