Update shared on 07 Nov 2025
Fair value Increased 2.51%Analysts have raised their price target for BWX Technologies from $203.30 to $208.40, citing strengthened demand in both the defense and nuclear power sectors, as well as ongoing positive market sentiment.
Analyst Commentary
Recent analyst research on BWX Technologies highlights both opportunities and risks affecting the company's outlook and valuation.
Bullish Takeaways
- Bullish analysts note that BWX's price target upgrades reflect increased demand for its naval nuclear power plants. They view these as a significant growth driver.
- Exposure to large-scale nuclear defense programs is considered to provide a stable, long-term revenue foundation. This positions BWX as a company capable of sustained execution in both the defense and civilian nuclear markets.
- Ongoing strength in the aerospace sector, including aftermarket demand trends and production increases, further supports optimism around BWX's future earnings and free cash flow growth.
- BWX is seen as having resilient upside potential as both a strategic supplier to defense contracts and as a merchant supplier to the broader nuclear power industry.
Bearish Takeaways
- Some analysts maintain a cautious stance due to the nuanced outlook for defense spending. Government budget uncertainties pose risks to future contract visibility and growth.
- The looming prospect of a government shutdown is cited as an overhang that may impact not just BWX's near-term results but also industry-wide fiscal year guidance.
- While underlying market sentiment remains positive, concerns linger about possible supply chain challenges in aircraft and defense. These could lead to execution risk if disruptions persist.
What's in the News
- BWX Technologies was awarded a $1.5 billion sole-source enrichment contract by the U.S. Department of Energy to support domestic uranium enrichment capability for defense purposes (Bloomberg).
- BWX Technologies announced commencement of construction for the Domestic Uranium Enrichment Centrifuge Experiment (DUECE) pilot plant in Erwin, Tennessee. The project aims to demonstrate low-enriched uranium production for national security missions.
- The company secured a 10-year, $1.6 billion contract from the National Nuclear Security Administration to build a high purity depleted uranium manufacturing plant at its Jonesborough, Tennessee site.
- BWX Technologies announced a $174 million contract for the manufacture of naval nuclear reactor fuel for the U.S. Naval Nuclear Propulsion Program. Work is underway, with completion targeted for summer 2026.
- BWX Technologies raised its 2025 full-year revenue guidance to above $3.1 billion, reflecting increased demand and contract wins.
Valuation Changes
- Consensus Analyst Price Target has risen modestly from $203.30 to $208.40, reflecting a positive market reassessment.
- Discount Rate has decreased slightly from 7.83% to 7.70%, indicating a mild reduction in perceived investment risk.
- Revenue Growth projections have fallen from 12.44% to 10.92%, suggesting a more tempered outlook for near-term expansion.
- Net Profit Margin has declined marginally from 10.84% to 10.35%, indicating a slightly less optimistic profitability forecast.
- Future P/E ratio has increased from 52.56x to 54.85x, which points to heightened expectations for future earnings performance.
Disclaimer
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