Analyst Mariana Perez Mora from Bank of America Securities reiterated a Hold rating on KBR and decreased the price target to $45.00 from $55.00.
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Mariana Perez Mora’s rating is based on several factors impacting KBR’s current and future performance. Despite a positive third-quarter performance, the company faces challenges due to shifting global priorities affecting its Sustainable Technology Solutions (STS) segment. These challenges include delays in U.S. LNG and petrochemical projects, tariff uncertainties, and a focus on energy affordability that has postponed green technology initiatives. The STS segment is attempting to adapt by targeting stronger international markets, but these efforts are still unfolding.
Additionally, concerns about the Lake Charles LNG project’s timeline and feasibility have emerged, as the competitive and costly nature of the LNG space requires significant equity partner involvement before proceeding. The Mission Technology Solutions (MTS) segment is also experiencing difficulties, with government shutdowns delaying contract awards and protest resolutions. This has resulted in a significant increase in contracts under protest, which could continue to pressure revenues and bookings. Given these uncertainties and challenges, Mariana Perez Mora has maintained a Hold rating for KBR, reflecting a cautious outlook until more clarity is achieved.
In another report released on October 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $44.00 price target.