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.
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."