UPDATE: Goldman Sachs Reiterates Buy on KBR, Removes From Conviction List

Goldman Sachs reiterated its Buy rating and $37 price target on KBR KBR but removed the stock from its Conviction List as it believes consensus estimates are too high. Goldman Sachs said, "While we continue to like KBR long term and remain Buy-rated, we recognize there is a choppy path and 2012/2013 consensus estimates likely need to come down before the stock will work. …We expect the quarter to be noisy. Our estimates are -15% vs. the Street (GS: $0.50 vs. CS: $0.58) as we expect the company to report pre-tax income similar to 1Q. In addition, we expect KBR to have an uneventful bookings quarter (GS book-to-bill: 0.92) and for the company to take a non-cash project charge of $0.14 on a previously disclosed LOGCAP contract. While we believe investors will likely look through the charge, it increases the noisiness of the quarter." KBR closed at $24.35 on Wednesday.