BWX Technologies: Strong Nuclear Positioning and Radiopharma Growth Drive Buy Rating

William Blair analyst Jed Dorsheimer has reiterated their bullish stance on BWXT stock, giving a Buy rating yesterday.

Jed Dorsheimer has given his Buy rating due to a combination of factors that highlight BWX Technologies’ strong positioning in the nuclear sector. The company’s involvement in the CANDU buildout, small modular reactors (SMRs), and the AP1000s, along with its radiopharma initiatives, presents significant upside opportunities. The management’s clear strategy and secured content wins with major players like GE Vernova, Rolls-Royce, and TerraPower further reinforce this positive outlook.
BWXT’s commercial nuclear business is well-diversified, with a balanced focus on services, maintenance, and plant extension-related equipment sales. The potential revenue from new CANDU builds and the recurring income from servicing and fueling these reactors contribute to a robust financial outlook. Additionally, the company’s strategic acquisitions and access to CANDU reactors position it favorably in the growing radiopharma sector, with a projected $30 billion total addressable market by 2030. These factors collectively underpin Dorsheimer’s Buy rating for BWXT.

In another report released yesterday, BTIG also reiterated a Buy rating on the stock with a $155.00 price target.