Update: Citi Raising Price Target On KBR

Citi Investment Research is out with a research report on KBR, Inc.

and is raising its price target to $54 and has a Buy rating on shares. In a note to clients, Citi Investment Research writes, "KBR reported 2Q11 EPS, which was 23% higher than consensus and raised guidance by 25%. In addition, management commentary on the fundamental landscape/outlook was largely unchanged, in our view. Even so, the shares declined by 3.9%, which compares to the 0.6% decline in the peer group (i.e. ex-KBR). In our opinion, the relative underperformance can be mainly attributed to the lack of near to medium term catalysts (i.e. LNG awards are expected in late 2011/2012) prompting investors to take profits (i.e. due to strong YTD performance). Indeed, we judge that despite a material opportunity set investors have grown impatient in the face of the broader market turmoil (i.e. U.S. debt ceiling, European sovereign debt crisis)." Shares of KBR lost $1.42 yesterday to close at $34.95.