Capital One Southcoast Upgrades Willbros Group (WG) to Add
WG Hot Sheet
Rating Summary:3 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Capital One Southcoast upgrades Willbros Group (NYSE: WG) from Neutral to Add, price target increased from $15 to $18.
Capital One analyst says, "The EPC loss hindered Upstream; Downstream continues to run in the red, and the trough in '09 has deepened w/ the 4Q guidance. Nonetheless, commentary on improving visibility, some discussion on turnaround work beginning to pick up, and the Fayetteville booking and backlog build (first time in 5 qtrs) create a willingness to begin looking beyond this trough to a still reasonable set of bookings opportunities and higher utlz for 2H10 and esp '11. If willing to extend the view into '11 where consensus earnings ~$1.10 are likely understated if pent up work materializes in '10, a high teens/low $20 valuation is defensible. We felt we were still a qtr away heading into earnings, but the bookings/backlog trends are encouraging signs that an inflection point could now be materializing. Despite a tough grind through operating losses over the next couple of qtrs, the pent up queue of install work that has never really gone away likely creates further bookings tailwinds through 1H10 that will continue to create an upward stock bias."
To see more analyst ratings on WG Click Here.
Willbros Group, Inc. provides engineering, construction, and specialty services to the oil and gas, power, refinery, and petrochemical industries, as well as to the governmental entities worldwide.
Capital One analyst says, "The EPC loss hindered Upstream; Downstream continues to run in the red, and the trough in '09 has deepened w/ the 4Q guidance. Nonetheless, commentary on improving visibility, some discussion on turnaround work beginning to pick up, and the Fayetteville booking and backlog build (first time in 5 qtrs) create a willingness to begin looking beyond this trough to a still reasonable set of bookings opportunities and higher utlz for 2H10 and esp '11. If willing to extend the view into '11 where consensus earnings ~$1.10 are likely understated if pent up work materializes in '10, a high teens/low $20 valuation is defensible. We felt we were still a qtr away heading into earnings, but the bookings/backlog trends are encouraging signs that an inflection point could now be materializing. Despite a tough grind through operating losses over the next couple of qtrs, the pent up queue of install work that has never really gone away likely creates further bookings tailwinds through 1H10 that will continue to create an upward stock bias."
To see more analyst ratings on WG Click Here.
Willbros Group, Inc. provides engineering, construction, and specialty services to the oil and gas, power, refinery, and petrochemical industries, as well as to the governmental entities worldwide.
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