Nuclear fuel agency BWX Technologies is “the nuclear pick [for] yesterday, today and tomorrow,” based mostly on Bank of America. Analyst Ronald Epstein reiterated his buy rating on the stock whereas rising his worth objective to $160 from $115. The new worth objective signifies better than 20% upside from the place shares closed on Wednesday. BWX’s important enterprise is providing U.S. submarines and carriers with naval nuclear reactors, nuclear fuel and completely different elements. Shares have surged 72.1% in 2024 due to the scarcity premium throughout the small modular reactor (SMR) market. Although {the marketplace} for SMRs stays to be to start out with phases, BWX stays to be a key supplier on the market, per Epstein. “Additionally, BWXT is uniquely positioned to the US Navy build up as the sole-source supplier of nuclear power plants for submarines and aircraft carriers,” Epstein wrote in a evaluation phrase on Thursday. The agency’s “monopolistic position” moreover shields it from any tailwinds from sluggish shipbuilders and shipyards effectivity, the analyst added. “We view BWXT as a pure-play beneficiary of bi-partisan support for the Department of Defense’s (DoD) Indo-Pacific strategy,” Epstein acknowledged. Shares climbed 4% Thursday sooner than the bell. Analysts are normally bullish on the stock. Of the 11 overlaying BWX Technologies, eight value it as buy or sturdy buy, LSEG information reveals.
