Citi Upgrades Fluor Corp. to Buy (FLR)

Citi is out with its report on Fluor Corp.

, upgrading FLR from Hold to Buy. In a note to clients, Citi writes, "We are upgrading FLR to Buy from Hold and raising our TP by $14.00 to $86.00/share. The changes reflect an increase in our target multiple to 21.5x from 20.0x as well as higher than previously forecast one year forward next 12 months EPS. Simply put, we believe a strengthening economic recovery and an improving fundamental landscape should translate into strong Oil & Gas new award activity over the next several quarters. In particular, we judge that FLR is well suited to benefit from increased spending in the energy complex, as historically strong margins in the Oil & Gas Segment should improve the revenue mix and drive EPS growth in the 2011/2013 period." At the time of posting, shares of FLR were trading pre-market at $71.38m down 0.04% from Thursday's close.