KBR downgraded to Neutral from Buy at UBS

UBS downgraded KBR (KBR) to Neutral from Buy with a price target of $54, down from $66. UBS sees balanced upside/downside risk over the next 6-12 months after recent headwinds, the analyst tells investors in a research note. The firm expects KBR to lower guidance to reflect recent developments, include the HomeSafe contract cancellation, and sees several headwinds and uncertainties in the government segment. While momentum could turn positive as soon as Q3 and drive upside, UBS sees a fairly equal risk that there are further negative developments before positive ones, including further budget cuts.