NEW YORK (TheStreet) -- Shares of Chicago Bridge and Iron Co. (CBI are higher by 2.08% to $68.26 in pre-market trading on Wednesday following a ratings upgrade to "buy" from "neutral" at D.A Davidson.

The firm said it raised its rating on the energy infrastructure focused company, which provides government services, based on its recent price drop which has created a buying opportunity.

Separately, Chicago Bridge and Iron stock tumbled on Tuesday after the company was accused of using "creative acquisition accounting" to alter its numbers and hide losses from 2013.

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Prescience Point research firm, which works exclusively to uncover fraudulent or misleading activities by other companies issued a report accusing Chicago Bridge and Iron of creating a reserve of almost $1.56 billion by making adjustments to its purchasing allocation following its 2013 acquisition of The Shaw Group (SHAW.

The company then used that money to inflate its 2013 profits and gross profit margins, claims Prescience Point.

Chicago Bridge and Iron called Prescience Point's accusations "grossly misleading and inaccurate."

"The report warns readers to assume that the short-selling firm and/or its affiliates hold short positions in CB&I common stock and that they stand to realize significant gains in the event that CB&I's stock price declines. CB&I believes that this conflict of interest should cause the report and its conclusions to be viewed skeptically," the company said.

Separately, TheStreet Ratings team rates CHICAGO BRIDGE & IRON CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHICAGO BRIDGE & IRON CO (CBI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 12.7%. Since the same quarter one year prior, revenues rose by 30.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 156.25% and other important driving factors, this stock has surged by 32.52% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • CHICAGO BRIDGE & IRON CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CHICAGO BRIDGE & IRON CO increased its bottom line by earning $4.18 versus $3.07 in the prior year. This year, the market expects an improvement in earnings ($5.09 versus $4.18).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 164.7% when compared to the same quarter one year prior, rising from $33.61 million to $88.95 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Construction & Engineering industry and the overall market, CHICAGO BRIDGE & IRON CO's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: CBI Ratings Report
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