Goldman Sachs analyst Jerry Revich last night upgraded KBR (KBR) to Neutral from Sell and raised his price target for the shares to $19 from $14. The analyst also downgraded Terex to Sell from Neutral and lowered his price target for the shares to $34 from $43. On KBR, Revich sees the company benefiting from a significant liquefied natural gas sanctioning cycle. He believes this thesis of earnings challenges from legacy LNG projects rolling off and portfolio de-risking has largely played out. On Terex, the analyst expects rental industry capacity additions of its core products to hit a peak this year. Revich also upgraded his view on the U.S. Engineering and Construction sector to Attractive on expectations an organic growth inflection will be seen in Q2 for the first time in five years.

Reports Q1 revenue $1.3B, consensus $1.24B. "Terex delivered excellent first quarter results, achieving sales growth and margin expansion versus the prior year," said CEO Simon Meester. "The Terex team continues to perform at a high level and demonstrate the power of its focused strategy and its proven ability to create value. We are raising our full-year outlook to reflect our strong first quarter performance, while also prudently planning for continued softness in Europe over the balance of the year." Meester continued, "Overall, customer demand remains strong for Terex's differentiated products as evidenced by our robust backlog. In addition, we are advancing our new product initiatives to bolster the Company's portfolio of market-leading businesses that will continue to benefit from megatrends over the coming years. We are focused on accelerating our profitable growth strategy and are committed to delivering strong performance through the cycle."