What Happened?
Shares of government and sustainable technology solutions company KBR (NYSE: KBR) fell 5.3% in the morning session after Truist Securities lowered its price target on the stock to $50 from $62, citing the suspension of the Lake Charles LNG project.
The reduction followed the project's suspension and the ramp-down of another project, Plaquemines, which impacted the firm's outlook on KBR's future performance. Truist Securities also cut its 2026 and 2027 estimates for KBR's Sustainable Technology Solutions business. The firm’s revised forecast for 2027 earnings before interest, taxes, depreciation, and amortization (EBITDA) of $880 million now stood 16% below consensus expectations, reflecting the adjusted outlook.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy KBR? Access our full analysis report here.
What Is The Market Telling Us
KBR’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 6% on the news that Oppenheimer initiated coverage on the company with an 'Outperform' rating. The analyst set a price target of $60.00 for the stock. Oppenheimer's positive view stemmed from what it called an "interesting, value-based investment opportunity." This perspective was largely based on the company's plan to spin off its government services business in mid-to-late 2026. The new coverage and rating provided investors with a fresh outlook on the company's potential performance and valuation.
KBR is down 29.8% since the beginning of the year, and at $40.62 per share, it is trading 32.8% below its 52-week high of $60.47 from January 2025. Investors who bought $1,000 worth of KBR’s shares 5 years ago would now be looking at an investment worth $1,382.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report.
