NEW YORK (TheStreet) -- UBS increased its target price on Foster Wheeler (FWLT) to $33, increased its EPS estimate and set a "neutral" rating. The firm noted E&C bookings are healthy and Power bookings better than expected.
The stock was ticking upward 0.12% to $32.10 shortly after the market opened on Friday.
Separately, TheStreet Ratings team rates FOSTER WHEELER AG as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FOSTER WHEELER AG (FWLT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FWLT's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- FWLT's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
- FWLT's share price has surged by 25.99% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The gross profit margin for FOSTER WHEELER AG is rather low; currently it is at 20.89%. Regardless of FWLT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, FWLT's net profit margin of 6.31% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction & Engineering industry. The net income has decreased by 13.1% when compared to the same quarter one year ago, dropping from $58.22 million to $50.61 million.
- You can view the full analysis from the report here: FWLT Ratings Report