Ahead Of The Bell: Chicago Bridge & Iron

HARTFORD, Conn. (AP) — Chicago Bridge & Iron Company NV, an energy-infrastructure construction company, will benefit from a natural gas project in Australia, could potentially increase its earnings on contract awards and its share value has room to grow, an analyst said Thursday.

Analyst Joe Ritchie of Goldman Sachs increased his rating to "Buy" from "Neutral."

"We believe Australia LNG is the most attractive end market in our space given the robust project pipeline and scarcity of contractors capable of doing the work," he said in a client note.

CB&I, based in The Hague, Netherlands, should participate "meaningfully on multiple projects" due to its storage tank capabilities, he said.

In the next six to eight years, Australia will more than double its liquefied natural gas capacity, making it one of the largest suppliers in the world, Ritchie said. Its proximity to Japan, Korea, India and China "should drive meaningful investment in the years to come," he said.

CB&I's share value has nearly quadrupled in value since its low point March 6, closing at $19.09 Wednesday.

Still, Ritchie said he believe CBI's valuation "provides an attractive entry point."

Shares rose 43 cents, or 2 percent, to $19.52 in premarket trading.