Foster Wheeler Shares Up On Bullish Analyst Note

HARTFORD, Conn. (AP) — Shares of Foster Wheeler AG gained Tuesday as an analyst said the engineering and construction company will perform well for the remainder of year due to steady work and the sector's strength.

Broadpoint AmTech analyst Will Gabrielski reiterated his "Buy" rating and $35 price target, which implies upside of 20.4 percent from its closing price Friday.

Following the Clinton, N.J., company's strong second-quarter results and engineering and construction contracts, "we believe the stage is set for follow-through on small and mid-sized engineering and construction activity," he said in a note to investors.

"However, following the stock's strong returns, we believe investors are questioning whether the second quarter was an anomaly and if there is enough business momentum to justify further share price appreciation over the next few quarters," Gabrielski said. "We believe there is."

He said a recent meeting with Foster Wheeler management was in line with the second-quarter earnings call, "which suggested that fundamentals remain solid with a potential significant wave of energy infrastructure investment materializing."