NEW YORK (TheStreet) -- Shares of Chicago Bridge & Iron (CBI) closed up 6.58% to $58.63 on Monday after analysts at Goldman Sachs upgraded the multinational conglomerate to "neutral" from "sell" and increased their price target to $55 from $40.
"Global LNG award cycle is nearing conclusion, but CBI is delivering stronger market share," analysts noted. "US LNG project progress has continued over the past quarter, including Magnolia, Freeport, Corpus Christi, and Elba Island projects."
Furthermore, Goldman Sachs increased its earnings estimates for 2016 and 2017 to $5.24 a share from $4.30 and to $4.66 a share from $3.73, respectively.
The analyst action also follows a report that Anadarko Petroleum (APC) is preparing to choose a construction team led by Chicago Bridge & Iron for a liquefied natural gas plant in East Africa.
About 4.9 million shares of Chicago Bridge & Iron traded today as the market closed, above the company's average trading volume of about 3.9 million shares.
TheStreet Ratings team rates CHICAGO BRIDGE & IRON CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHICAGO BRIDGE & IRON CO (CBI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."