In a report published Monday, Goldman Sachs analyst Jerry Revich resumed coverage on KBR with a Buy rating and $41.00 price target.
In the report, Revich noted, “We see 10% upside potential to
consensus estimates over 2013-15E and a valuation re-rating opportunity ahead of (1) a significant acceleration in LNG project award activity in 2014, (2) rising North America chemical industry investment, where KBR's extensive technology portfolio is well positioned, and (3)
beatable 2013 management guidance and lowered consensus expectations. Valuation risk-reward is compelling with the stock trading at less than 10x 2014E EPS, a 25% discount to the group despite the most leverage to the E&C end markets with the strongest growth profile, in our view.”