BW - Babcock & Wilcox Enterprises Is A 'Sell' After The Stock Pops (Rating Downgrade)
2024-07-14 20:56:01 ET
Summary
- Babcock & Wilcox Enterprises, Inc. share price surged in July '24 following the sale of one asset; it presents a profit-taking opportunity after a recent asset sale.
- Despite positive news about Q1 '24 revenue and new contracts, the share price seemed stuck and volatile; it might not sustain its recent increase.
- Concerns about order fulfillment delays, potential Republican environmental regulations, and valuation metrics contribute to our Sell assessment for BW stock.
Overview
The run-up in the share price of Babcock & Wilcox Enterprises, Inc. ( BW ) in July ’24 makes this a profit-taking opportunity, igniting our Sell rating, at this time. There is a Strong Buy consensus among the few analysts following BW. They forecast higher earnings over the next few quarters based on management's statement to shareholders because the company expects to generate sufficient revenue while pursuing higher-margin contract work and cutting overhead. We believe changes in direction will take longer than a few quarters to impact the financials and raise the share price to a talked-about target of $5 per share. Here is how Seeking Alpha foresees the EPS:
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Babcock & Wilcox Enterprises Is A 'Sell' After The Stock Pops (Rating Downgrade)