Update shared on11 Sep 2025
Fair value Increased 1.18%Analysts have modestly raised BWX Technologies' price target to $183.64, citing its strong positioning in both defense and commercial nuclear markets, durable cash flows, and unique growth catalysts across military and civilian applications, though concerns persist over its premium valuation.
Analyst Commentary
- Bullish analysts highlight BWX Technologies' strong positioning in both defense and commercial nuclear sectors, benefiting from persistent demand in large nuclear defense programs and emerging opportunities as a merchant nuclear supplier.
- The company is described as being able to play both “offense and defense” due to its diversified exposure across military and civilian nuclear markets, supporting resilient and stable cash flows.
- Naval nuclear power plants remain in high demand, providing BWX with a strategic advantage and continued revenue growth opportunities.
- BWX is considered uniquely positioned to support deployments in military, space, and potential new commercial nuclear build-outs, offering long-term growth catalysts.
- Bearish analysts express concern over the company's valuation, citing a 50-times free cash flow multiple on 2025 estimates, and note limited near-term upside relative to current share price despite recognizing long-term value potential.
What's in the News
- BWX Technologies secured approximately $2.6 billion in U.S. Naval Nuclear Propulsion Program contracts for submarine and aircraft carrier reactor components, building on previous awards.
- The company reached a milestone in advanced TRISO nuclear fuel manufacturing, enabling higher uranium density fuels and expanded production for advanced reactors and the Department of Energy's ARDP.
- Fabrication commenced on the reactor core for the transportable Pele microreactor for the Department of Defense, with electricity production expected in 2028 and potential applications for both military and commercial use.
- Mike T. Fitzgerald was named Chief Financial Officer after serving as interim CFO and previously as chief accounting officer.
- BWX Technologies raised its full-year 2025 revenue guidance to $3,100 million from prior guidance of $3,000 million.
Valuation Changes
Summary of Valuation Changes for BWX Technologies
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $181.50 to $183.64.
- The Future P/E for BWX Technologies remained effectively unchanged, moving only marginally from 41.86x to 42.35x.
- The Discount Rate for BWX Technologies remained effectively unchanged, at 7.83%.
Disclaimer
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