KBR downgraded to Neutral at BofA on lack of catalysts

As previously reported, BofA analyst Mariana Perez Mora downgraded KBR (KBR) to Neutral from Buy with a price target of $55, down from $70. The cancellation of the DoD’s $20B HomeSafe contract, which had been expected to be a key growth driver in the medium term, combined with other program cancellations and a lack of near-term new catalysts, will “give the market pause,” the analyst contends. The firm expects KBR shares to be “largely range-bound” until the company can regain its “credibility” in Mission Technologies Solutions and meaningful Sustainable Technology Solutions awards kickoff, the analyst added.