Babcock & Wilcox Enterprises, Inc. (NYSE:BW) shares are down slightly on Thursday after the company received a limited notice to proceed on an approximately $130 million air-quality control project for a U.S. coal-fired power plant.
• What’s ahead for BW stock?
Under the limited notice, Babcock & Wilcox will begin development, engineering, and long-lead procurement work. The project aims to help the facility reduce emissions while maintaining reliable power generation.
Babcock & Wilcox expects its subsidiary, Babcock & Wilcox Construction Co., LLC, to handle the project’s construction and installation.
The company said North American utilities are investing in existing coal-fired generation assets as electricity demand grows.
Babcock & Wilcox provides environmental technologies and emissions-control solutions for utility and industrial customers.
Babcock & Wilcox Technical Outlook: Trend Remains Weak
Babcock & Wilcox remains below its key moving averages, trading 9.2% below its 20-day SMA of $8.03, 22% below its 50-day SMA of $9.34, and 37.1% below its 200-day SMA of $11.58.
Its 50-day SMA also remains below the 200-day SMA following an August Death Cross, signaling continued weakness in the longer-term trend.
Momentum has improved somewhat. MACD remains above its signal line with a positive histogram, indicating that downside pressure has eased even though the broader trend has not reversed.
Key resistance stands near $7.50, while $7 represents nearby support.
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Analysts Maintain Bullish Consensus
Babcock & Wilcox carries a Buy consensus rating with an average price target of $9.
Needham initiated coverage with a Buy rating and a $20 target on Aug. 31.
BW Stock Price Action
Babcock & Wilcox shares were down 0.94% to $7.36 at time of publication on Thursday, according to Benzinga Pro data.
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