KBR price target lowered to $64 from $72 at TD Cowen

TD Cowen lowered the firm’s price target on KBR (KBR) to $64 from $72 and keeps a Hold rating on the shares. The December quarter results for the government services group should be in-line with “mixed” bookings, and 2025 outlooks consistent with Street estimates, the analyst tells investors in a research note. The firm says Q4 will be a “low discovery” period versus the sector overhang, which is the Department of Government Efficiency under President Trump. DOGE’s fundamental impact may be small, but it is too early to know and the agency’s rhetoric is negative, contends TD. It believes this will restrain the group’s upward re-rating prospects and investor urgency to step into stocks. TD favors the high relative 2025 growth names of Booz Allen (BAH) and CACI (CACI).