Barclays Maintains an 'Equalweight' on The Shaw Group (SHAW); Lowering Price Target on Choppier Outlook after Disappointing 3Q11

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.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
• MarineMax (HZO) PT Lowered to $35 at Stifel
• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform