UPDATE: Jefferies Raises Price Target On KBR Following Earnings (KBR)

Jefferies & Co. is raising its price target on shares of KBR, Inc. KBR after the company reported earnings. It's raising its price target to $42 from $33, and has a Hold rating on shares. In a note to investors, Jefferies writes, "KBR reported 1Q earnings of $0.54 per share (ex. tax benefit) versus our expectations of $0.50. Consensus expectations were $0.53 per share. Raising 2011/2012 EPS estimate by $0.05 on higher crude forecasts. Company mix shift progressing quite well and could earn a better going forward valuation. We have raised our target, but risk/reward appears balanced at current levels, with a bias to the upside. KBR reiterated 2011 EPS guidance of $2.05-2.30. We expect revenues to decline and profit margins to improve as low margin (LogCAP III, Escravos) work is replaced by higher margin new awards in LNG, services, downstream, and infrastructure." Shares of KBR are up 59 cents in early Friday trading to $38.36, a gain of 1.6%.