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CB&I plunges 31% to eight-year lows following disastrous Q2 results – Chicago Bridge & Iron Company (NYSE:CBI)

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Chicago Bridge & Iron (CBI -31.7%) plunges to eight-year lows at the open following yesterday’s news of disastrous Q2 results and a dividend suspension.

CBI also cut its FY 2017 guidance for EPS to $1.00-$1.25 from its earlier outlook for $3.50-$4.00 and for revenue to $3.7B-$4B from $9.5B-$10.5B.

Baird analysts maintain their Neutral rating on the stock and cut their price target to $10 from $24, seeing CBI’s cash burn likely continuing with ample risk stemming from further project degradation.

Citigroup also keeps its Neutral rating on CBI while trimming its price target to $18 from $20, as the firm does not see a major liquidity risk because the company’s technology business is a “significantly valuable asset that should have lots of interested buyers,” but it worries that Q2’s $548M in charges are “more the start and not the end” of CBIs challenges.

But Deutsche Bank maintains its Buy rating although with a reduced target price of $21 from $25, seeing a “clear path” to trading near $20 again if management executes and avoid further cost overruns.



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