Goldman Sachs Raises KBR Estimates, Reiterates Buy Rating

Goldman Sachs is reiterating its Buy rating on KBR, Inc. KBR. “We view KBR as a ‘catalyst rich' stock with strong leverage to the energy investment cycle and an improving margin profile,” Goldman Sachs writes. “We expect this coupled with Iraq/Escravos rolling off in 2012 to continue to improve KBR's margin profile. “We are raising our 2011/2012 EPS to $2.20/$2.35 from $2.05/$2.30 to account for the accretion from the recent acquisitions. We are also raising our 12-month price target to $38 from $37 to reflect higher estimates. Our price target is based on 16.0X 2012 earnings.” KBR, Inc. closed Thursday at $30.86.