Shares of Babcock & Wilcox Enterprises Inc. jumped 6.4% in pre-market trading on Monday after Needham initiated coverage with a buy rating and a $20 price target, representing a 179% upside from Friday’s closing price of $7.16.
The upgrade follows the company’s recent $2.4 billion FastPower contract with Base Electron, which expanded Babcock & Wilcox’s order backlog to approximately $2.6 billion. Analyst Sean Milligan at Needham highlighted improvements in the company’s balance sheet and the strategic value of the FastPower platform as key drivers for the recommendation.
FastPower, a modular gas turbine technology, is positioned to address data center power needs amid lengthening delivery times for traditional gas turbines and rising combined cycle costs. Needham noted that the platform could become a recurring revenue source for data center operators.
Babcock & Wilcox also cited a quoted project pipeline exceeding $14 billion for 2027 and beyond, with a second project expected to receive final authorization before the end of 2026. The company’s BrightLoop expansion is slated to begin in 2028, further supporting its growth outlook.
