Barclays Maintains an 'Equalweight' on The Shaw Group (SHAW); Lowering Price Target on Choppier Outlook after Disappointing 3Q11
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Price: $47.61 --0%
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 5 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on The Shaw Group (NYSE: SHAW), PT lowered from $41 to $34.
Barclays analyst says, "While it's tough to find many positives in SHAW's disappointing FY3Q11 result, we do believe that the read-through to the broader E&C group should be limited...We lower our price target to $34 based on 14x our FY12 estimate of $2.30 plus ~$2 in excess cash (was $41 on 15x our CY12 estimate of $2.40 plus ~$5 in cash). We bring down our FY12 EPS estimate to $2.30 from $2.40 on lower revenue and margin assumptions given a slower/choppier recovery in the Energy & Chemical and Power businesses and some near-term utilization concerns following a quarter of weaker bookings across the board. We revise down our target multiple to reflect an increased level of uncertainty amidst a frequency of recent charges/mixed execution issues." (Barclays slashes FY11 EPS estimate from $1.60 to -0.04)
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 $29.83 yesterday.
Barclays analyst says, "While it's tough to find many positives in SHAW's disappointing FY3Q11 result, we do believe that the read-through to the broader E&C group should be limited...We lower our price target to $34 based on 14x our FY12 estimate of $2.30 plus ~$2 in excess cash (was $41 on 15x our CY12 estimate of $2.40 plus ~$5 in cash). We bring down our FY12 EPS estimate to $2.30 from $2.40 on lower revenue and margin assumptions given a slower/choppier recovery in the Energy & Chemical and Power businesses and some near-term utilization concerns following a quarter of weaker bookings across the board. We revise down our target multiple to reflect an increased level of uncertainty amidst a frequency of recent charges/mixed execution issues." (Barclays slashes FY11 EPS estimate from $1.60 to -0.04)
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 $29.83 yesterday.
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