Why Chicago Bridge & Iron Company Stock Dropped 11% on Wednesday
Shares of Chicago Bridge & Iron Company (NYSE: CBI) closed down 10.9% on Wednesday after the engineering company saw its stock cut to "hold" by analysts at Jefferies.
A one-notch downgrade from buy to hold doesn't sound so bad, but here's the thing: Back when Jefferies was still recommending that investors buy Chicago Bridge stock (i.e., yesterday), the analyst was predicting CB&I shares would more than triple to $35 a share. That pie-in-the-sky possibility is now off the table.
Instead, according to Jefferies, Chicago Bridge stock is probably worth $12 at best. Granted, that's still 20% more than what the stock costs today. But for any investors who had been hoping to see CB&I turn into a three-bagger, news of this price target cut had to come as the biggest disappointment.
Source: Fool.com