Citi spent some time on the road in meetings with the senior management team of Chicago Bridge & Iron Co. CBI. Overall, the company's message has remained consistent and Citi has come away from the meetings with a higher level of conviction in Citi's investment opinion and $52.50 per share target price.
In Citi's opinion, an investment in CBI allows investors to profit from projects across the entire hydro-carbon value chain. Moreover, in the near term, CBI is positioned well to take advantage of the seemingly robust LNG spending cycle as well as the potential for increased oil sands production. In the medium term,
as liquids rich shale gas production ramps up, CBI can gain from the build out of
natural gas processing facilities as well as petrochemical plants. Lastly, CBI has the potential to benefit from the build out of nuclear reactor containment vessels
For investors seeking to gain exposure to emerging markets, CBI represents a good way to get involved as Citi estimates that ~85% of backlog is located in the developing world.
Citi has a Buy rating and $52.50 PT on CBI
CBI closed Monday at $39.49
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in