BWX Technologies (BWXT) is benefiting from high demand for its naval nuclear power plants and is positioned to support the deployment of US military and space nuclear power, analysts at BofA Securities said in a Wednesday research note.

The US Navy's $2.6 billion July pricing agreement for the procurement of BWX reactors and components for submarines and carriers drove a record backlog and offers revenue certainty over the six-to-eight-year delivery period, the analysts said, adding "we continue to see incremental upside when production rates improve."

Accelerating US small modular reactor development could also position the company as a major supplier, as the executive order reforming the Nuclear Regulatory Commission outlines the expansion of US nuclear generation to 400 gigawatts by 2050, BofA said.

The company's Pele transportable microreactor garnered attention after a May executive order called for expediting military nuclear reactor deployment by 2028. BWX is also likely to benefit from NASA's plans to develop lunar surface nuclear power technology by 2030, BofA noted.

BofA increased its 2025, 2026, and 2027 EPS forecast to $3.75, $4.25, and $4.90, respectively, from $3.55, $3.95, and $4.80 earlier to reflect more robust profitability on strong demand for its products and services.

The BofA analysts reiterated a buy rating on the stock and increased the price target to $220 from $155.

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