But the company also has an underappreciated growth story as an attractive "pick-and-shovels" way to play the nuclear renaissance theme, Morgan Stanley analysts led by Kristine Liwag told clients in a research note Thursday.
Curtiss-Wright builds a crucial reactor coolant pump for Westinghouse's third-generation AP1000 nuclear plants and there's growing interest in these builds in Europe in particular.
Talk of a nuclear renaissance 15 years ago fizzled due to the political emphasis on renewables and competitively priced alternatives, the Morgan Stanley analysts said.
Modernization of current nuclear plants in the U.S. is a $7 billion opportunity through 2050, according to Curtiss-Wright management.
In a bull case, Curtiss-Wright could realize $4.9 billion in revenue through 2050 on AP1000 builds, Morgan Stanley estimates.
Persons:
Morgan Stanley, Wright, Kristine Liwag, Morgan Stanley's
Organizations:
Curtiss, Westinghouse
Locations:
Europe, Japan, Ukraine, Curtiss, Wight, U.S, Canada, South Korea