Uncertain Foster Wheeler Outlook

Foster Wheeler (FWLT - Analyst Report) designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure, including power generation and distribution facilities, and gasification facilities. The company is also involved in the design of facilities in new or developing market sectors, including carbon capture and storage, solid fuel-fired integrated gasification combined-cycle power plants, coal-to-liquids and bio-fuels.

The global economic growth - coupled with the attendant demand for oil, gas, petrochemicals and refined products - that stimulated investment in new and expanded plants over the last 12 to 24 months, is expected to continue to some degree during 2008. In addition, driven by the rising cost of power and the high price of oil and gas, the demand for solid-fuel industrial boilers also persists.

However, given the uncertainties that have crept into worldwide financial expectations, we have maintained our Hold opinion. Our six-month target price is based on current market conditions. Our projection for FWLT for fiscal 2008 is $3.54 share, fully-diluted; using the average P/E of 22.7 engenders a price of $80.36.

Read the full analyst report on FWLT.