Citi Comments On Chicago Bridge & Iron Co. Following Management Meetings

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