Update shared on06 Aug 2025
Fair value Increased 16%Analysts have raised their price target for BWX Technologies to $168.33, acknowledging long-term growth prospects from new nuclear opportunities but cautioning that the current valuation is stretched and upside is limited, leading to a Hold rating despite the higher fair value.
Analyst Commentary
- Price target increased to better reflect long-term value from new build commercial nuclear opportunities.
- Analysts see current valuation as stretched, reflected in a 50-times free cash flow multiple on 2025 estimates.
- Despite the higher price target, limited upside is anticipated from current share levels.
- Cautious outlook expressed due to valuation concerns outweighing long-term growth catalysts.
- Transition from Buy to Hold driven by reassessment of risk/reward at present share price.
What's in the News
- BWX Technologies raised full-year 2025 revenue guidance to $3.1 billion from $3.0 billion.
- Mike T. Fitzgerald was appointed Chief Financial Officer after serving as interim CFO; he has a background in aerospace, defense, and financial operations.
- Work began on fabricating the Pele microreactor core, a transportable 1.5 MW nuclear reactor for the Department of Defense, with fuel manufacturing completed and key partnerships with Rolls-Royce and Northrop Grumman.
- BWX Technologies achieved a major milestone in manufacturing advanced TRISO nuclear fuel, enhancing production flexibility and supporting multiple reactor programs and market demand.
- The company secured U.S. Naval Nuclear Propulsion Program contracts worth approximately $2.6 billion to manufacture reactor components for submarines and aircraft carriers over the next 6–8 years.
- A joint venture led by BWXT and partners won the contract to manage Canadian Nuclear Laboratories, valued at CAD 1.2 billion annually for an initial six years, with a focus on science, technology, decommissioning, and Chalk River revitalization.
Valuation Changes
Summary of Valuation Changes for BWX Technologies
- The Consensus Analyst Price Target has significantly risen from $148.30 to $168.33.
- The Discount Rate for BWX Technologies has risen from 7.25% to 7.85%.
- The Net Profit Margin for BWX Technologies has risen from 11.96% to 12.60%.
Disclaimer
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