KBR Secures Five-Year $92.6M Contract With US Navy
KBR has won a $92.6 million five-year contract from the US Navy to provide services on counter unmanned air systems (C-UAS).
The engineering and technology solutions company said that the contract is a cost-plus-fixed-fee, indefinite-delivery and indefinite-quantity (IDIQ) contract.
KBR (KBR) Government Solutions President, Byron Bright, said, “Our work through this new win will have wide-reaching impacts within the DoD and international allied community. We are excited to join as it advances C-UAS technology and, ultimately, strengthens national security and protects our armed forces around the globe.”
As a part of this contract, KBR will also provide services to various identification and data link systems of the US Navy. The company’s specific tasks will include the integration and installation of systems, development of training materials, delivery of formal training programs and testing and repair of C-UAS. (See KBR stock analysis on TipRanks)
Earlier this month, DA Davidson analyst Brent Thielman downgraded the stock from a Buy to a Hold and reiterated a price target of $30. Thielman cited the recent appreciation in KBR’s share price and said that shareholders had been “rewarded” as the company has moved to a “more stable” business model over the long-term.
The analyst added that the company’s near-term catalysts could be limited as it leverages to an economic recovery and the cyclical spending in the energy markets has also changed.
The rest of the Street is bullish about the stock with a Strong Buy consensus rating. That’s based on 5 analysts recommending a Buy and 1 analyst suggesting a Hold. The average analyst price target of $35.67 implies almost 12% upside potential to current levels.
According to the TipRanks Smart Score system, KBR scores a 5 out of 10, indicating that the stock is likely to perform in line with market averages.
BHP Group Expects Strong Steel Demand From China To Drive 2H21
EBay Says UK Regulator Raises Concern Over $9.2B Adevinta Deal
ACI Teams Up With Auriga For Self-Service Banking Platform; Street Says Buy