UPDATE: JP Morgan Initiates Overweight, $28.50 PT on Foster Wheeler

P Morgan initiates its coverage on Foster Wheeler

with a rating of Overweight and a $28.50 price target as it believes this discounted energy play should not be overlooked. JP Morgan notes, "We consider FWLT an attractive play on an improving E&C landscape, given its strong energy focus, technology-driven competitive advantages, and modest risk tolerance. We believe the sizable discount multiple stems largely from (1) a sluggish E&C award pace, and (2) skepticism following a prolonged CEO search, and will narrow as E&C backlog grows, and as sentiment improves. Our YE12 PT of $28.50 assumes 12.5x 2013E EPS of $2.30, implying 31% upside." FWLT closed at $21.78 yesterday.