Baker Hughes' (BKR) acquisition of Chart Industries is financially compelling and adding a third leg to its stool, RBC Capital Markets said in a note Monday.

RBC analysts updated their estimates following the close of its $13.6 billion acquisition of Chart but ahead of a formal guidance.

"We view the acquisition as financially compelling as it is 11% accretive to 2027 EPS, improves corporate EBITDA margins, and broadens BKR's growth profile into industrial end markets," the analysts said.

The acquisition is margin accretive, with corporate EBITDA margins expected to improve 30 basis points in 2026 and 70 bps in 2027, they said.

RBC maintained its outperform rating while raising its price target to $76 from $71.

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