Chicago Bridge & Iron climbs after strong 3Q

Shares of Chicago Bridge & Iron rise after strong 3Q results, optimism on new projects

• On 10:16 am EDT, Wednesday October 28, 2009

HARTFORD, Conn. (AP) -- Shares of Chicago Bridge & Iron Co. jumped in morning trading Wednesday, a day after the engineering and construction firm reported that cost-cutting boosted its third-quarter profit.

Goldman Sachs analyst Joe Ritchie added Chicago Bridge & Iron to the firm's "Conviction Buy" list. The company has many potential projects that could lift profit estimates, and problems related to a British liquefied natural gas problem are expected to soon end, he said.

Ritchie also raised his 12-month price target to $26 from $25.

Meanwhile, Barclays Capital analyst Andy Kaplowitz said in a client note that Chicago Bridge & Iron will likely wrap up the liquefied natural gas project that has been the source of delays and cost overruns.

"Arguably, what we think is most important to understand about CBI is that really only South Hook LNG has stood in the way of a much stronger earnings performance for the company over the last year and we are gaining confidence that South Hook will indeed be completed and not be an overhang in 2010," Kaplowitz said.

He said Chicago Bridge & Iron could receive new awards in the next few quarters. Kaplowitz raised his price target to $24 from $22 and reiterated his "Overweight" rating.

Shares rose $1.14, or 6 percent, to $20.31 in morning trading. The stock has ranged from $4.64 to $21.44 over the past year.

Buzz up!