Barclays on U.S. Engineering & Construction: Uncertainty Offers Long-Term Opportunities (FLR, CBI, MDR, FWLT, MTZ)

July 23, 2012 3:03 PM EDT Send to a Friend
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Barclays on U.S. Engineering & Construction: Uncertainty Offers Long-Term Opportunities

Analyst, Andy Kaplowitz, sees long-term prospects for the energy-exposed E&C companies ahead of Q2 earnings. However, slowing bookings may lead to some choppiness in results and outlook. Investor concerns circles around macro weak economic data and Kaplowitz wouldn't be surprised to see some sequential decline in Q2 backlogs, but corporate management should try to be reassuring with positive commentary.

Kaplowitz said, "Our top picks into the quarter remain Fluor (NYSE: FLR) and Chicago Bridge & Iron (NYSE: CBI), but Foster Wheeler (Nasdaq: FWLT) and McDermott (NYSE: MDR) are interesting at these levels ahead of low expectations, and MasTec's (NYSE: MTZ) more defensive positioning and favorable risk/reward offers good longer-term upside."

For CBI, Barclays lowers its price target from $54 to $53, lowers FY12 EPS estimate from $3.00 to $2.95 and FY13 from $3.50 to $3.45.

On FWLT, price target is lowered from $35 to $33, FY12 EPS estimate from $1.80 to $1.70, and FY13 from $2.20 to $2.10.

MDR's price target is lowered from $18 to $17, FY13 EPS estimate from $1.20 to $1.10.


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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

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Barclays, Earnings

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