BWX Technologies' (BWXT) stock price increased due to a scarcity premium within the small modular reactor market and its status as a merchant supplier places it in a unique position to benefit from the sector's growth, BofA Securities said in a note on Thursday.
The firm said that the company benefits from being the exclusive supplier of nuclear reactors for the US Navy's submarines and aircraft carriers. The Navy is expected to continue purchasing these reactors despite shipyard delays due to the critical importance of maintaining a consistent supply.
BWX Technologies is positioned for medium-term growth in the international Canadian Deuterium Uranium nuclear power market through new reactor builds, refueling, and lifespan extensions, according to the note.
"In Special Materials, we look favorably on BWX Technologies' position as the sole commercial holder of a Category 1 Nuclear Regulatory Commission license, allowing BWX to handle critical special nuclear materials," BofA added.
The firm increased its price objective on the company's stock to $160 from $115 and reiterated its buy rating.
Price: 131.96, Change: -0.16, Percent Change: -0.12
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。