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BWX Technologies upgraded to Outperform at Baird

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BWX Technologies (NYSE:BWXT) on Friday was upgraded to Outperform from a previous rating of Neutral by analysts at financial-services firm Baird. They said the supplier of nuclear components and fuel to the U.S. government and commercial nuclear-power industry is poised for gains.

“BWX’s (BWXT) nuclear business is about as long-cycle as they come with visibility as far-reaching as 30 years into the future,” Peter J. Arment, analyst at Baird, said in an August 4 report. “BWX (BWXT) deserves a premium to its peer group due to its position of strength in the industry as a sole-source manufacturer with significant barriers to entry.”

The company’s operating performance, backlog visibility, improving cash generation and organic growth opportunities also are positive for its outlook.

Baird raised its price target on BWX (BWXT) to $85 a share from $61 a share using a discounted cash flow analysis.

The U.S. Defense Advanced Research Projects Agency last month picked BWX (BWXT) and defense contractor Lockheed Martin (LMT) to develop a nuclear-powered spacecraft.

BWX (BWXT) in June was added to the Standard & Poor’s 400 midcap stock index (SP400).

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