Babcock (NYSE:BW) Stock Gets Price Target Reduction from Needham & Company LLC

Key Points

• Needham cut its price target on Babcock & Wilcox from $20 to $15 but maintained a Buy rating; the new target implies 296.3% upside from the prior close. Across analysts, the stock has an average Hold rating and a $15.75 target.
• Third-quarter revenue rose 109% year over year to $290.8 million, while adjusted EBITDA increased to $17.7 million. Management reiterated its 2026 EBITDA outlook of $80 million–$105 million and set a 2027 target of $125 million–$140 million.
• Cash flow remains a concern: operating cash flow was negative $130.6 million, and reported net income benefited from an $85.1 million change in customer-warrant fair value.

Babcock (NYSE:BW - Get Free Report) had its price objective reduced by research analysts at Needham & Company LLC from $20.00 to $15.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the technology company's stock. Needham & Company LLC's price objective suggests a potential upside of 296.30% from the company's previous close.

Several other equities analysts have also issued reports on the company. Weiss Ratings restated a "sell (d+)" rating on shares of Babcock in a research report on Wednesday, November 4th. Wall Street Zen lowered shares of Babcock from a "buy" rating to a "hold" rating in a report on Sunday, August 23rd. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $15.75.

Babcock Stock Performance

BW stock opened at $3.79 on Tuesday. The company has a quick ratio of 1.33, a current ratio of 1.45 and a debt-to-equity ratio of 4.21. Babcock has a twelve month low of $3.07 and a twelve month high of $22.03. The business's fifty day moving average is $5.66 and its 200-day moving average is $11.29. The company has a market cap of $563.81 million, a P/E ratio of -21.03 and a beta of 1.24.

Babcock (NYSE:BW - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The technology company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.02. Babcock had a negative return on equity of 4.51% and a negative net margin of 2.17%. The business had revenue of $319.72 million during the quarter, compared to the consensus estimate of $196.95 million. Equities research analysts forecast that Babcock will post 0.27 EPS for the current year.

Insider Activity at Babcock

In related news, Director Philip Moeller acquired 5,000 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average cost of $9.50 per share, for a total transaction of $47,500.00. Following the completion of the acquisition, the director directly owned 240,809 shares in the company, valued at approximately $2,287,685.50. The trade was a 2.12% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 2.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Babcock

A number of large investors have recently added to or reduced their stakes in BW. Arrowstreet Capital Limited Partnership raised its position in Babcock by 777.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,974,324 shares of the technology company's stock valued at $43,693,000 after buying an additional 2,635,304 shares during the last quarter. Situational Awareness LP boosted its position in Babcock by 49.7% during the 2nd quarter. Situational Awareness LP now owns 2,027,451 shares of the technology company's stock worth $28,587,000 after acquiring an additional 673,551 shares during the last quarter. Wellington Management Group LLP bought a new position in shares of Babcock during the 2nd quarter worth approximately $18,260,000. Bank of America Corp DE grew its stake in shares of Babcock by 1,743.7% during the 1st quarter. Bank of America Corp DE now owns 1,096,502 shares of the technology company's stock worth $16,108,000 after acquiring an additional 1,037,028 shares in the last quarter. Finally, Cooper Creek Partners Management LLC acquired a new stake in shares of Babcock in the first quarter valued at approximately $15,205,000. Institutional investors own 83.17% of the company's stock.

Key Headlines Impacting Babcock

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: Third-quarter revenue reached $290.8 million, up 109% year over year and above analyst estimates. Adjusted EBITDA rose to $17.7 million from $9.4 million a year earlier, while bookings increased 112% to $228 million. Babcock & Wilcox Enterprises Reports Third Quarter 2026 Results
• Positive Sentiment: Management reiterated its 2026 adjusted EBITDA outlook of $80 million to $105 million and set a 2027 target of $125 million to $140 million. The company also highlighted a pipeline exceeding $16 billion, supporting hopes for further growth. Babcock & Wilcox outlines 2027 adjusted EBITDA target
• Positive Sentiment: Backlog stood at $2.5 billion. B&W also repurchased $38 million of shares and redeemed $61.8 million of 6.5% bonds due in December 2026, which may ease some debt and refinancing concerns. Babcock & Wilcox third-quarter results
• Neutral Sentiment: Reported net income was boosted by an $85.1 million change in the fair value of customer warrants, so headline profit may not reflect recurring performance. Babcock & Wilcox revenue and Q3 results
• Negative Sentiment: Operating cash flow was negative at $130.6 million, a notable caution despite the revenue and adjusted EBITDA gains. Babcock & Wilcox Q3 earnings and cash flow

About Babcock

Babcock & Wilcox Enterprises, Inc is an energy and environmental technology company serving power, industrial and municipal customers. Its offerings include steam-generation equipment, emissions-control systems and related engineering, construction, maintenance and aftermarket services.

The company also develops technologies for renewable and waste-to-energy applications, including systems that use biomass and municipal solid waste to produce energy. Its environmental technologies help customers manage emissions and other byproducts from energy and industrial processes.

The business traces its roots to the Babcock & Wilcox Company, founded in 1867, and serves customers in the United States and international markets.

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