Babcock & Wilcox downgraded to Hold from Buy at Craig-Hallum

Craig-Hallum downgraded Babcock & Wilcox to Hold from Buy with a price target of $2, down from $10, following the Q3 miss, lowered guidance for 2023, and initial 2024 guidance below estimates. While macro tailwinds remain and its H2 and CO2 capture offerings are gradually progressing, B&W’s execution has been uneven, visibility is lower, and the timeline for H2 and CO2 capture has been longer than expected, further straining a heavily levered balance sheet, the analyst tells investors in a research note.