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Broadpoint.AmTech Reiterates a 'Buy' on Fluor Corp. (FLR); Current Level Offers Opportunity

June 19, 2009 12:00 PM EDT
FLR Hot Sheet
Rating Summary:
    13 Buy, 5 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Broadpoint.AmTech reiterates a 'Buy' on Fluor Corp. (NYSE: FLR). Price target $65.

Broadpoint analyst says, "Fluor has debunked bearish cases quarter in and quarter out through steady (albeit lumpy) bookings, strong earnings performance, solid margin results and a realistic view of industry fundamentals. Comparing Fluor to Jacobs (NYSE: JEC) as two leaders in the space, we highlight Fluor’s execution on initial 2009 guidance as quite impressive: investor sentiment put Jacobs in the defensive/predictable camp due to its “relationship driven” business model, while Fluor was perceived to be at risk due to global energy capex exposure."

"We believe the stock could consolidate in the near-term following the nearly euphoric sentiment emerging from industry conferences over the past few weeks and the potential for 2Q09 bookings to reflect the low point in 2009 bookings, which management has suggested on multiple occasions. Also, we do not expect the move in oil from $70 to $100 to match the velocity of the move off of the mid-$30 lows to $70. Even so, trends remain very favorable. We would be buyers at current levels with a 12-24 month positive industry outlook and use weakness from $45-$50 to gain exposure ahead of strong bookings prospects in 3Q09-2010."

To see more analyst ratings on FLR Click Here.

Fluor Corporation (Fluor) is a holding company that, through its subsidiaries, provides engineering, procurement and construction management (EPCM) and project management services.

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