Nuclear fuel company BWX Technologies is “the nuclear pick [for] yesterday, today and tomorrow,” according to Bank of America. Analyst Ronald Epstein reiterated his buy rating on the stock while increasing his price target to $160 from $115. The new price target indicates more than 20% upside from where shares closed on Wednesday. BWX’s primary business is providing U.S. submarines and carriers with naval nuclear reactors, nuclear fuel and other components. Shares have surged 72.1% in 2024 due to the scarcity premium in the small modular reactor (SMR) market. Although the market for SMRs is still in the beginning phases, BWX is still a key supplier in the market, per Epstein. “Additionally, BWXT is uniquely positioned to the US Navy build up as the sole-source supplier of nuclear power plants for submarines and aircraft carriers,” Epstein wrote in a research note on Thursday. The company’s “monopolistic position” also shields it from any tailwinds from sluggish shipbuilders and shipyards performance, the analyst added. “We view BWXT as a pure-play beneficiary of bi-partisan support for the Department of Defense’s (DoD) Indo-Pacific strategy,” Epstein said. Shares climbed 4% Thursday before the bell. Analysts are generally bullish on the stock. Of the 11 covering BWX Technologies, eight rate it as buy or strong buy, LSEG data shows.
Bank of America says buy this little-known nuclear energy stock
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