A Baird analyst today downgraded shares of the engineering and construction firm, the Shaw Group, saying questions by federal regulators about a reactor design could spell trouble for the company’s nuclear-power business. Analyst Andrea E. Wirth focused her comments on a decision Thursday by the Nuclear Regulatory Commission that said a key part of a reactor built by Westinghouse might not withstand a tornado, earthquake or even high winds. Shaw owns a 20% stake in Westinghouse Electric, a producer of atomic power-plant equipment. Wirth cut Shaw’s rating to “Neutral” from “Outperform,” saying the shares are near the firm’s $32 price target and the “timing of the nuclear outlook has become increasingly uncertain.” Shares of Shaw closed at $31.25 on Thursday. In premarket trading today, the shares fell 70 cents to $30.55.
Analyst downgrades Shaw Group on share value, regulatory delay of reactor design
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