Babcock & Wilcox (BW) Surges 9.39% as Analyst Upgrades and Institutional Bets Fuel Pre-Market Rally

Babcock & Wilcox (NYSE:BW) surged 9.39% in pre-market trading on Dec. 10, 2025, as renewed analyst optimism and institutional activity fueled investor interest. The stock broke above its 200-day moving average of $2.65, signaling a potential shift in momentum for the power generation and environmental equipment provider.

Recent analyst activity highlighted divergent views on the stock’s trajectory. Weiss Ratings maintained a “sell (d-)” rating in early October, while DA Davidson raised its price target to $6.00 with a “neutral” stance in November. Craig Hallum and Lake Street Capital both upgraded to “buy” or “hold” ratings, with target prices ranging from $6.00 to $9.00. These conflicting assessments underscored a broader debate over the company’s valuation and growth potential in the renewable energy sector.

Institutional investors also adjusted positions in the third quarter, with Bank of America Corp DE significantly increasing holdings by 3,605.8% to $74,000. Other firms, including Qube Research & Technologies Ltd and Centiva Capital LP, initiated new stakes in the stock, reflecting confidence in B&W’s strategic pivot toward waste-to-energy solutions and environmental technologies. These moves added to the stock’s appeal ahead of the pre-market rally.

Analysts noted that the recent pre-market activity and upgrades could indicate a turning point for the stock, especially in light of the company’s pivot toward environmentally sustainable energy solutions. The price movement and institutional interest were seen as early signs of broader market recognition of B&W’s long-term strategy.