KBR, Inc. (NYSE:KBR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Monday.

According to Zacks, “KBR’s Government Services business has proven to be its strongest profit churner in recent times. Also, the company remains confident that recent acquisitions will continue to accelerate growth momentum of this business. Also, KBR’s recent acquisitions namely, Wyle and HTSI, is expected to fortify its government services business. Moreover, greater proportion of reimbursable service annuity-type contracts in the backlog signals margin expansion. However, on the flip side, over the past six months, KBR’s shares have yielded a negative return, wider than the decline recorded by the Zacks categorized Engineering/R&D Services industry. The company has a choppy earnings surprise history, beating estimates twice for as many misses over the trailing four quarters.  Prolonged softness in the Engineering & Construction sector, coupled with volatility in oil and gas prices, may pose a threat to KBR's growth.”

KBR has been the subject of several other research reports. BidaskClub raised shares of KBR from a “sell” rating to a “hold” rating in a research note on Saturday, June 10th. Vertical Research raised shares of KBR from a “hold” rating to a “buy” rating in a research note on Monday, May 1st. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have assigned a buy rating to the company. The company has a consensus rating of “Hold” and an average price target of $17.83.

Shares of KBR (KBR) opened at 15.07 on Monday. The company has a 50-day moving average price of $14.91 and a 200 day moving average price of $15.35. The firm’s market capitalization is $2.16 billion. KBR has a one year low of $13.16 and a one year high of $17.95.

KBR (NYSE:KBR) last released its quarterly earnings data on Friday, April 28th. The construction company reported $0.28 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.28. KBR had a negative net margin of 1.51% and a positive return on equity of 4.79%. The business had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.12 billion. During the same quarter in the previous year, the business earned $0.30 EPS. KBR’s quarterly revenue was up 11.0% compared to the same quarter last year. Analysts expect that KBR will post $1.31 earnings per share for the current fiscal year.

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Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capstone Asset Management Co. raised its position in KBR by 1.7% in the first quarter. Capstone Asset Management Co. now owns 17,241 shares of the construction company’s stock worth $259,000 after buying an additional 290 shares in the last quarter. Ngam Advisors L.P. raised its position in KBR by 1.6% in the first quarter. Ngam Advisors L.P. now owns 19,428 shares of the construction company’s stock worth $292,000 after buying an additional 309 shares in the last quarter. Loews Corp raised its position in KBR by 1.8% in the first quarter. Loews Corp now owns 27,813 shares of the construction company’s stock worth $418,000 after buying an additional 500 shares in the last quarter. Advantus Capital Management Inc raised its position in KBR by 3.2% in the first quarter. Advantus Capital Management Inc now owns 18,293 shares of the construction company’s stock worth $275,000 after buying an additional 562 shares in the last quarter. Finally, Nationwide Fund Advisors raised its position in KBR by 0.3% in the first quarter. Nationwide Fund Advisors now owns 253,356 shares of the construction company’s stock worth $3,808,000 after buying an additional 649 shares in the last quarter. 99.75% of the stock is owned by hedge funds and other institutional investors.

KBR Company Profile

KBR, Inc is a provider of professional services and technologies across the asset and program life-cycle within the government services and hydrocarbons industries. The Company operates through business segments, including Technology & Consulting (T&C), Engineering & Construction (E&C), Government Services (GS), Non-strategic Business and Other.

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Analyst Recommendations for KBR (NYSE:KBR)

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