BofA Cautious on KBR (KBR) Amid Macro Headwinds, Impending Business Split

KBR Inc. (NYSE:KBR) is one of the most undervalued NYSE stocks to buy right now. On November 13, BofA lowered the firm’s price target on KBR to $45 from $55 and kept a Neutral rating on the shares. While the company delivered a beat in Q3 2025, BofA noted that investors are remaining cautious due to macro headwinds and the impending business split.

In Q3, KBR saw several contract wins, of which the most notable was a $2.5 billion contract with NASA. The company also earned $1.02 per share, which beat estimates by $0.07. Despite these positive factors, KBR’s revenue for the quarter was flat compared to the year-ago period due to challenges in converting bookings into recognized revenue. Quarterly revenue totaled $1.93 billion, which modestly declined by ~0.8% year-over-year and missed estimates by $42.07 million.

The company’s Sustainable Technology Solutions segment experienced headwinds from delays in LNG project development and some petrochemical project cancellations. At the same time, the Readiness and Sustainment segment saw a 22% revenue decline due to strategic shifts and cost reductions by the DoD.

KBR Inc. (NYSE:KBR) provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. It operates through Government Solutions and Sustainable Technology Solutions segments.

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Disclosure: None. This article is originally published at Insider Monkey.