Citi trims KBR target, says buy on cancelled contract selloff

Citi lowered the firm’s price target on KBR (KBR) to $67 from $69 and keeps a Buy rating on the shares. The analyst thinks KBR shares should be bought on the weakness that likely will come from the Department of Defense’s termination of the HomeSafe Alliance Contract, in which KBR is the majority partner. The project to essentially digitize military moves seemed to prove too difficult to implement, the analyst tells investors in a research note. Citi views the news as a “black eye” for KBR, but says the cancellation is not surprising. The stock in premarket trading is down 1% to $52.15.