Oppenheimer Sees Good Time To Buy Fluor (FLR), Down 6% Since Mid February
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Get Alerts FLR Hot Sheet
Price: $53.42 -2.41%
Rating Summary:
13 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Rating Summary:
13 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
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Oppenheimer is reiterating their Outperform rating on shares of Fluor (NYSE: FLR) as they believe that the recent down turn in their stock price makes it a perfect time to Buy more shares.
The firm reports that shares of FLR are down 6% from their peak in mid February, but a majority of it is due to the overall market contraction from Middle East and Japan events on top of inherent share price volatility. With the company's fundamentals not changing, once the company reports quarterly numbers, shares should increase as confidence comes back.
The company repurchased 3.1 million shares in 2010 and Oppenheimer comments that they still have 9.3 million left in their repurchase plan. With $2.1 billion in cash at the end of 2010, the company may be looking to repurchase soon given that the price is currently down.
Oppenheimer believes that mining and O&G to be key drivers in the company's 2011 growth. They comment that, "Excluding charges in '10, we are modeling '11 EBIT margins flat y-o-y at 4.1%. We acknowledge headwinds related to lower margin mining and O&G ramp; however, believe this is adequately reflected in our model, with potential upside levers."
For more ratings news on Fluor click here and for the rating history of Flour click here.
Shares of Fluor closed at $72.05 yesterday.
The firm reports that shares of FLR are down 6% from their peak in mid February, but a majority of it is due to the overall market contraction from Middle East and Japan events on top of inherent share price volatility. With the company's fundamentals not changing, once the company reports quarterly numbers, shares should increase as confidence comes back.
The company repurchased 3.1 million shares in 2010 and Oppenheimer comments that they still have 9.3 million left in their repurchase plan. With $2.1 billion in cash at the end of 2010, the company may be looking to repurchase soon given that the price is currently down.
Oppenheimer believes that mining and O&G to be key drivers in the company's 2011 growth. They comment that, "Excluding charges in '10, we are modeling '11 EBIT margins flat y-o-y at 4.1%. We acknowledge headwinds related to lower margin mining and O&G ramp; however, believe this is adequately reflected in our model, with potential upside levers."
For more ratings news on Fluor click here and for the rating history of Flour click here.
Shares of Fluor closed at $72.05 yesterday.
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