- BWX Technologies (BWXT +1.3%) is higher after BofA Merrill Lynch upgrades shares to Buy from Neutral with a $55 price target, up from $43, seeing the company as a "significant beneficiary" of U.S. Navy investment under the new Trump administration.
- The firm says an incremental 12 Virginia-class submarines compared to the current Navy shipbuilding plan could provide $2B-plus of revenue for BWXT in the next 20 years.
- BofA raises its Nuclear Operations segment sales growth outlook to 8% compound annual growth rate in 2016-20 from a prior 3% rate to factor in Virginia-class production stable at two/year, increased production of uranium fuel materials, control rod mechanisms and heavy components related to increased nuclear reactors, and incremental missile tube sales from Virginia Payload Module.