KBR (KBR) is back in focus after a run of new U.S. defense and space contracts, including firm-fixed-price awards totaling US$103 million and an additional US$77 million task order from the U.S. Space Force.

Despite the fresh U.S. defense and space awards, KBR’s recent trading tells a mixed story, with an 8.12% year to date share price return contrasting with a 1 year total shareholder return decline of 18.90%. This hints at improving short term momentum alongside a more muted longer term experience.

If contract wins in defense and space have your attention, it could be a good time to widen your search and check out 33 AI infrastructure stocks as another way to find ideas tied to digital and mission critical infrastructure themes.

With KBR trading at US$43.80, sitting at a reported 61% discount to one intrinsic value estimate and 25% below analyst targets, you have to ask: is there a real opportunity here, or is the market already baking in future growth?

Most Popular Narrative: 20% Undervalued

At a last close of $43.80 against a widely followed fair value estimate of about $54.78, the current price sits well below that narrative anchor.

The planned business spin is viewed as a key catalyst that could unlock portfolio value, sharpen strategic focus, and support multiple expansion over the next year. Despite trimmed revenue expectations into 2025, management maintaining profitability guidance is seen as evidence of solid cost discipline and resilient margin execution.

Curious how a business separation, steady margins, and measured growth assumptions combine to support that higher value? The full narrative lays out the earnings roadmap and the profit multiple it relies on.

Result: Fair Value of $54.78 (UNDERVALUED)

However, that upside view still leans on smooth government funding and contract awards, as well as on KBR executing its portfolio shift without cost or margin surprises.

Build Your Own KBR Narrative

If you see the data differently or simply prefer to work from your own assumptions, you can build a complete KBR view yourself in just a few minutes, starting with Do it your way.

A great starting point for your KBR research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.