- KBR (KBR -4.5%) is downgraded to Hold from Buy with a $17 price target, cut from $19, at Johnson Rice, which cites "increased uncertainty" around the company's new contract awards.
- The firm says KBR may not win the engineering, procurement and construction contract for the Tangguh LNG train 3, prompting worries of potential downside risk to FY 2017 earnings estimates which already represent a drop from 2016.
- "As a result of not winning several major potential EPC contracts over the past few quarters and with uncertainty over the timing of when the Magnolia LNG project will move to construction, we believe there is risk for the backlog to continue to decline over the next several quarters," according to Johnson Rice.