Babcock & Wilcox Company Receives Buy Rating from Craig-Hallum, Analyst Consensus Suggests Moderate Buy

Craig-Hallum analyst Aaron Spychalla has maintained a Buy rating on Babcock & Wilcox Company with a price target of $2.67, an 80.41% upside from current levels. The analyst consensus rating is Moderate Buy with a $2.67 average price target. There has been an increase in insider buying, with CFO Cameron M Frymyer purchasing 20,000 shares for $31,000 earlier this month.

Babcock & Wilcox Company (NYSE: B&W) has received a Buy rating from Craig-Hallum analyst Aaron Spychalla, with a price target of $2.67, representing an 80.41% upside from the current share price of $1.56 [1]. The analyst consensus rating is a Moderate Buy, with an average price target of $2.67 [1].

The company's second-quarter 2025 results showed a modest revenue decline and aggressive debt reduction efforts. Revenue fell by $7.3 million year-over-year to $144.1 million, while the Global Parts & Services segment surged 31% to $64.8 million, driven by increased demand for fossil fuel-based baseload generation [1]. The company's strategic restructuring and long-term value creation narrative are evident in its $177 million sale of Diamond Power International and $131.8 million bond refinancing [1].

CFO Cameron M. Frymyer recently purchased 20,000 shares of the company's common stock for $31,000, indicating insider confidence in the company's prospects [2]. The purchase occurred on August 19, 2025, and follows a larger-than-expected loss for the second quarter of 2025, with earnings per share at -$0.63 [2]. Despite the loss, the company's strategic focus on decarbonization and its ability to adapt to hybrid energy systems mitigate potential risks [1].

Investors should remain cautious about macroeconomic headwinds, including inflation, interest rates, and geopolitical tensions, which could disrupt project timelines and supply chains. However, the company's strategic pivot towards decarbonization technologies positions it to benefit from the global energy transition [1].

For value investors, B&W's Q2 results present a compelling case, with a deleveraged balance sheet and strong EBITDA growth. The company's ability to stabilize its financial position and diversify its revenue streams suggests a path to long-term value creation [1].

References
[1] https://www.ainvest.com/news/babcock-wilcox-company-receives-hold-rating-craig-hallum-2508/
[2] https://www.investing.com/news/insider-trading-news/young-kenneth-m-babcock--wilcox-ceo-buys-30k-in-bw-shares-93CH-4200229