Maxim Group analyst Tate Sullivan reiterated a Buy rating on BWX Technologies (BWXT – Research Report) yesterday and set a price target of $85.00.
Tate Sullivan’s Buy rating on BWX Technologies (BWXT) is influenced by several key factors. Firstly, the 3Q23 results reported by BWXT exceeded expectations and the company issued an encouraging preliminary guidance for 2024. Moreover, the company has narrowed its operating EPS guidance for 2023, indicating anticipated stability in the fourth quarter of 2023, even though this is slightly below consensus.
In 2024, BWXT is expected to demonstrate mid-single-digit revenue and EPS growth, in line with projections. Sullivan also predicts that BWXT will use its free cash flow to increase dividends, reduce debt, and repurchase shares starting from 2024. Despite the current trading of BWXT shares at 20.7x Sullivan’s 2025 EPS forecast, he maintains a Buy rating and an $85 price target, indicating expected growth. The company’s impressive 3Q23 performance and positive forecasts for 2024 and 2025, therefore, seem to underpin Sullivan’s Buy rating.
In another report released on November 1, Truist Financial also maintained a Buy rating on the stock with a $83.00 price target.
BWXT’s price has also changed moderately for the past six months – from $64.260 to $76.900, which is a 19.67% increase.
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BWX Technologies (BWXT) Company Description:
BWX Technologies, Inc. engages in the supply and provision of nuclear components and products. It operates through the following business segments: Nuclear Operations Group, Nuclear Services Group and Nuclear Power Group. The Nuclear Operations Group segment focuses on the design and manufacture of equipment for nuclear applications. The Nuclear Services Group segment includes nuclear materials processing, environmental site restoration services and management, operating services for various government-owned facilities, and inspection and maintenance services for the commercial nuclear industry. The Nuclear Power Group segment involves in the design and manufacture of commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and other auxiliary equipment such as containers for the storage of spent nuclear fuel and other high-level nuclear waste. The company was founded by Stephen Wilcox and George Babcock in 1867 and is headquartered in Lynchburg, VA.
Read More on BWXT:
- BWX narrows FY23 EPS view to $2.90-$2.95 from $2.85-$3.00
- BWX Technologies reports Q3 adjusted EPS 67c, consensus 63c
- BWX Technologies awarded $300M contract for naval nuclear reactor fuel
- BWX Technologies initiated with a Buy at Deutsche Bank ahead of ‘second act’
- BWX Technologies initiated with a Buy at Deutsche Bank
