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.
