KBR, Inc. has reached a licensing agreement with JS Energy Limited. The agreement paves the way for the use of the firm’s proprietary K-PRO Propane Dehydrogenation (PDH) technology. JS Energy is to use the technology in Pakistan in the generation of propylene.
The licensing agreement marks an important milestone for KBR (KBR) as the technology in question is on course to have a ripple effect in the industry. The technology provides a competitive edge thanks to its unique and compact design resulting in lower capital costs.
The technology also stands out partly because it does not rely on expensive metals for operations. Therefore, the technology can deliver significant operating cost benefits. JS Energy’s K-PRO powered plant should be up and running in 2024.
While KBR shares were flat in 2020, they are up about 26% since the start of the year. (See KBR stock analysis on TipRanks).
The K-PRO licensing agreement comes just days after Cowen & Co analyst Gautam Khanna reiterated an outperform rating on KBR. The analyst has a $38 price target on KBR, implying 2.6% downside potential to current levels.
“KBR’s investor day offered bold financial targets that imply EPS may more than double by C25. Long-term targets are inherently low conviction (to us), but we believe that the stock should re-rate to our $38 PT based just on C21 financial targets,” stated Mr. Khanna.
Currently, KBR commands a Strong Buy consensus rating on Wall Street. Six analysts rate the stock as a Buy and one recommends a Hold. The average analyst price target of $40.57 implies 3.89% upside potential to current levels.
However, the stock scores a 6 out of 10 on the TipRank’s Smart Score rating system, suggesting an expected neutral performance.
Related News
Good natured Products Announces Preliminary Results For 1Q
SAP Posts Fastest Cloud Business Growth In Five Years During 1Q, Raises Outlook
Public Storage Snaps Up ezStorage For $1.8B
