Barclays Maintains an 'Equalweight' on The Shaw Group (SHAW); FY4Q11 Review: Choppy Quarter Overshadows Some Slow Improvement
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Price: $47.61 --0%
Rating Summary:
5 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 9 | New: 7
Rating Summary:
5 Buy, 5 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 5 | Down: 9 | New: 7
Trade SHAW Now!
Barclays maintains an 'Equalweight' on The Shaw Group (NYSE: SHAW) price target lowered from $34 to $31.
Barclays analyst says, "SHAW's disappointing FY4Q was again plagued by project specific execution issues, but there seems to be modest signs that some of its core businesses are continuing to slowly improve. While we thought SHAW was making progress at improving its operational effectiveness and project execution, this quarter's results seem to suggest a bump in the road, even though some of the underlying results looked relatively good (bookings of $1.8bn beat our $1.6bn estimate; total revenues were in line; Fossil & Nuclear margins ex-charges were relatively strong at ~9%). Execution issues aside, we think the stock's outperformance yesterday (up ~5% vs. the S&P500 down ~2.5%) was a combination of relatively low expectations into the quarter and some enthusiasm around management's initiative to divest the E&C business and its more definitive plan to deploy cash in the near term. Nonetheless, we think the company still has to prove that it can deliver more consistent operational results before longer-term investors will give it credit for the potential improvement in its underlying businesses." (Barclays lowers FY11 EPS estimate from $2.30 to $1.90)
For more ratings news on The Shaw Group click here and for the rating history of The Shaw Group click here.
Shares of The Shaw Group closed at $23.26 yesterday, with a 52 week range of $18.98-$41.62.
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Barclays analyst says, "SHAW's disappointing FY4Q was again plagued by project specific execution issues, but there seems to be modest signs that some of its core businesses are continuing to slowly improve. While we thought SHAW was making progress at improving its operational effectiveness and project execution, this quarter's results seem to suggest a bump in the road, even though some of the underlying results looked relatively good (bookings of $1.8bn beat our $1.6bn estimate; total revenues were in line; Fossil & Nuclear margins ex-charges were relatively strong at ~9%). Execution issues aside, we think the stock's outperformance yesterday (up ~5% vs. the S&P500 down ~2.5%) was a combination of relatively low expectations into the quarter and some enthusiasm around management's initiative to divest the E&C business and its more definitive plan to deploy cash in the near term. Nonetheless, we think the company still has to prove that it can deliver more consistent operational results before longer-term investors will give it credit for the potential improvement in its underlying businesses." (Barclays lowers FY11 EPS estimate from $2.30 to $1.90)
For more ratings news on The Shaw Group click here and for the rating history of The Shaw Group click here.
Shares of The Shaw Group closed at $23.26 yesterday, with a 52 week range of $18.98-$41.62.
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