Should You Buy Babcock & Wilcox Enterprises Inc (BW) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
10.560
1 Day change
4.87%
52 Week Range
10.870
Analysis Updated At
2026/01/25
Babcock & Wilcox Enterprises Inc (BW) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock shows strong bullish momentum, insider buying trends, positive analyst sentiment, and a significant growth opportunity from its $1.5B data center power plant contract. Despite weak recent financial performance, the long-term growth potential outweighs short-term concerns.
Technical Analysis
The stock is in a strong bullish trend with MACD positively expanding, RSI indicating overbought conditions at 85.112, and bullish moving averages (SMA_5 > SMA_20 > SMA_200). The price is above key resistance levels, with R1 at 9.357 and R2 at 9.948. The recent price increase of 7.14% in the regular market and 0.50% post-market further supports the bullish sentiment.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Moving Average Consensus
Sell
6
Buy
10
Positive Catalysts
2026/01/25 22:13:03
Insider buying increased by 113.98% in the last month.
Analysts are optimistic, with multiple upgrades and a $10 price target by Northland.
The company secured a $1.5B contract for a data center power plant, indicating strong growth potential.
Gross margin increased by 5.37% YoY in Q3 2025.
Neutral/Negative Catalysts
2026/01/25 22:13:03
Financial performance in Q3 2025 was weak, with revenue down 2.37% YoY, net income down 446.82% YoY, and EPS down 400% YoY.
RSI indicates overbought conditions, suggesting a potential short-term pullback.
Financial Performance
In Q3 2025, revenue dropped by 2.37% YoY to $149.01M, net income fell by 446.82% YoY to $31.38M, and EPS declined by 400% YoY to 0.3. However, gross margin improved by 5.37% YoY to 24.93%, indicating operational efficiency.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts are bullish on BW. Northland initiated coverage with an Outperform rating and a $10 price target, citing significant growth potential from the $1.5B data center power plant contract. Other analysts have upgraded the stock and raised price targets, reflecting optimism about the company's future prospects.
Wall Street analysts forecast BW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BW is 9 USD with a low forecast of 9 USD and a high forecast of 9 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
Wall Street analysts forecast BW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BW is 9 USD with a low forecast of 9 USD and a high forecast of 9 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 10.070
Low
9
Averages
9
High
9
Current: 10.070
Low
9
Averages
9
High
9
Northland
Jeff Grampp
Outperform
initiated
$10
AI Analysis
2026-01-22
Reason
Northland
Jeff Grampp
Price Target
$10
AI Analysis
2026-01-22
initiated
Outperform
Reason
Northland analyst Jeff Grampp initiated coverage of Babcock & Wilcox with an Outperform rating and $10 price target. The thermal power and energy infrastructure engineering company had "a transformational 2025" that included significant de-levering through asset sales and capital raises along with a $1.5B contract to build a power plant for a data center, the analyst tells investors. The firm expects significant growth over the next several years through an improving base business and the data center contract, the analyst added.
Clarksons
Neutral -> Buy
upgrade
NOK 150
2025-12-03
Reason
Clarksons
Price Target
NOK 150
2025-12-03
upgrade
Neutral -> Buy
Reason
Clarksons upgraded BW LPG to Buy from Neutral with a NOK 150 price target. The firm cites valuation for the upgrade.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for BW
