Entering text into the input field will update the search result below

CB&I scores a Wells Fargo upgrade after positive legal decision

Jun. 28, 2017 11:29 AM ETJacobs Solutions Inc. (J) StockCBI, FLR, JBy: Carl Surran, SA News Editor109 Comments
  • Analysts say Chicago Bridge & Iron (CBI +2.3%) can run still higher after surging 39% yesterday following the unexpected favorable ruling from the Delaware Supreme Court in a dispute with Westinghouse Electric.
  • Wells Fargo upgrades shares to Outperform from Market Perform with a $28 price target, saying CBI now has the potential to close the valuation gap with its peers, particularly if it sells its Technology business and repairs its balance sheet in the coming periods.
  • CBI still faces several hurdles including a potential Cameron LNG charge and perhaps others, continued tight liquidity and challenging end markets, a  CEO transition and balance sheet repair, but "as CBI moves past these hurdles, we would expect the stock to continue to compress the valuation gap with its peers," Wells analyst Justin Ward writes.
  • Ward advocates a sale of CBI's Technology business, which he thinks could fetch $1.25B-$1.9B; he calculates the earnings power of the remaining business at $2.50-plus in EPS, against which the stock is currently trading at 8x, while peers Jacobs Engineering (JEC +2%) and Fluor (FLR +1.8%) trade at ~15x.

Recommended For You

About J Stock

SymbolLast Price% Chg
Market Cap
PE
Yield (TTM)
Rev Growth (YoY)
Prev. Close
Compare to Peers

Related Stocks

SymbolLast Price% Chg
J--
Jacobs Solutions Inc.