Fluor Price Target Cut: Look For Double Bottom? (NYSE: FLR)
February 26, 2010 2:23 PM
Analyst Recap On Fluor Corp
Richard Rossi from Wunderlich Securities has cut his price target on Fluor Corp (NYSE: FLR) to $57 from $65. This cut was resulted from adjustments he made to his pricing models based on Fluor's 4Q results. His rating remains at a Buy.
Mr. Rossi explains, "Fluor Corporation (FLR) finished the year with an in-line 4Q earnings report, but reported that new projects appeared to be pushed back, especially in the energy markets. An uncertain global economic environment is the prime culprit. As a result, new order flows are likely to remain sluggish in the first half. Soft orders in the third and fourth quarters of 2009 will have an impact mostly on revenues, and, to a lesser degree, margins in the oil and gas sector in 2010."
Critical Price Level To Watch
Our eyes remain on the $41.71 price level as it was previous support. If FLR closes on a new daily high without dipping below this price level, it would be very bullish for Fluor on the short run to fill this gap down.
