Update shared on26 Sep 2025
Fair value Increased 3.47%Analysts have raised their price target for BWX Technologies to $190.00, citing robust recurrent defense contracts, increasing demand for naval and space nuclear power, and strong commercial nuclear growth prospects, though some caution remains over valuation at elevated multiples.
Analyst Commentary
- Bullish analysts highlight BWX's strong exposure to large, recurring nuclear defense programs and significant upside as a merchant supplier to the broader nuclear power industry, portraying the company as able to capitalize on both stable and high-growth segments.
- Elevated demand for BWX's naval nuclear power plants underpins optimism regarding long-term growth prospects, particularly given the company's unique positioning to support deployment in both military and space nuclear power applications.
- Increased price targets reflect analysts’ recognition of sustained cash flow visibility and the resilience of BWX's defense-related contract base.
- Some bullish analyst commentary notes BWX’s strategic advantage in the coming wave of new commercial nuclear build-outs, given the limited number of qualified suppliers.
- Bearish analysts express caution over valuation, with concerns about the company trading at a high multiple of estimated 2025 free cash flow, citing limited upside potential from current price levels despite underlying sector tailwinds.
What's in the News
- BWX Technologies was awarded a $1.5 billion sole-source contract by the U.S. Department of Energy's NNSA to establish domestic uranium enrichment capability, including construction of the DUECE pilot plant in Tennessee, expected to create about 100 skilled jobs (Bloomberg; Key Developments, 2025-09-16).
- The company commenced work on fabricating the core for the Department of Defense's Pele microreactor, a 1.5 MW transportable reactor scheduled to be operational by 2028, with TRISO fuel completed and partnerships in place for key components (Key Developments, 2025-07-24).
- BWX Technologies reached a significant milestone in advanced TRISO nuclear fuel manufacturing, enhancing its production capability for next-generation advanced reactors and positioning itself for multiple government and commercial programs (Key Developments, 2025-07-22).
- The company secured approximately $2.6 billion in new contracts with the U.S. Naval Nuclear Propulsion Program for reactor components supporting Virginia and Columbia-class submarines and Ford-class carriers, extending through the next six to eight years (Key Developments, 2025-07-17).
- BWX Technologies raised its full-year 2025 revenue guidance to $3.1 billion (from $3.0 billion), reported no recent share repurchases for Q2 2025, and named Mike T. Fitzgerald as permanent CFO after serving as interim since May (Key Developments, 2025-08-04; 2025-07-31).
Valuation Changes
Summary of Valuation Changes for BWX Technologies
- The Consensus Analyst Price Target has risen slightly from $183.64 to $190.00.
- The Future P/E for BWX Technologies has risen slightly from 42.35x to 43.82x.
- The Discount Rate for BWX Technologies remained effectively unchanged, at 7.83%.
Disclaimer
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