Babcock & Wilcox stock price target raised to $1.50 from $1.00 at DA Davidson

Investing.com - DA Davidson raised its price target on Babcock & Wilcox Enterprises (NYSE:BW) to $1.50 from $1.00 on Tuesday, while maintaining a Neutral rating on the stock.

The price target increase reflects recent divestiture activities and other actions that are expected to improve the company’s capital position, including the extension of debt maturities. According to InvestingPro data, the company currently operates with a significant debt burden of $536 million and a concerning debt-to-capital ratio of 0.8.

DA Davidson’s new target represents 10 times its free cash flow estimate for Babcock & Wilcox in 2026, according to the research note.

The firm noted that Babcock & Wilcox’s capability to address both traditional and alternative power generation assets provides potential opportunities amid growing market needs.

Despite acknowledging "notable progress" year-to-date in the company’s operations, DA Davidson indicated it will continue monitoring execution progress and further capital structure developments before considering a rating change.

In other recent news, Babcock & Wilcox Enterprises Inc. reported a significant financial shortfall for the second quarter of 2025. The company posted an earnings per share (EPS) of -$0.63, which was considerably below the projected -$0.07. Revenue for the quarter was $144.1 million, missing the expected $182.07 million. These results indicate a challenging period for the company, as they did not meet the financial forecasts set by analysts. Following the earnings announcement, there was a notable reaction in the stock market. Although the stock dipped during regular trading, it showed a slight recovery in after-hours trading. These developments highlight the current financial hurdles Babcock & Wilcox is facing.

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