Jefferies has initiated coverage of BWX Technologies Inc. with a Buy rating and a price target of $181 per share, citing the company’s dominant position in U.S. naval nuclear components and fuel production. The firm’s valuation is supported by a projected price-to-earnings-to-growth (PEG) ratio of 2x, compared with the current PEG of 1.98x.
BWX Technologies, which designs and manufactures nuclear reactors and fuel for the U.S. Navy’s submarine and aircraft carrier fleets, reported adjusted earnings per share of $1.07 for the second quarter of 2026, exceeding Wall Street estimates of $1.05. Revenue for the quarter reached $901.6 million, slightly below the forecasted $905.4 million. The company raised its full-year free cash flow guidance to a range of $345 million to $360 million, while its backlog expanded to $8.4 billion.
Analysts project annual revenue growth of 6% to 7% and earnings per share growth of 13% to 17% through 2030. Recent performance has been robust, with year-over-year revenue growth of 23% in the second quarter and an 18% increase in revenue compared with the same period last year. The backlog has surged 40% over the same timeframe. Jefferies noted that BWX Technologies benefits from stable demand as the sole supplier of naval nuclear components and fuel, with over 420 reactor cores delivered without safety incidents.
The company’s risk profile is mitigated by its limited exposure to uranium and enrichment price volatility, according to Jefferies. Beyond naval contracts, BWX Technologies is advancing its Advanced Nuclear Reactor technology for the U.S. Army’s Janus program, with the first reactor slated for installation at Fort Campbell in Kentucky.
Shares of BWX Technologies were trading at $155.67 on September 1, 2026, down $5.87 or 3.63% from the prior session. The stock has ranged between $147.74 and $241.82 over the past 52 weeks. Jefferies’ bullish stance follows an upgrade from Wells Fargo, which raised its rating from Underweight to Equal Weight ahead of the company’s investor day.
