Foster Wheeler Sees Smaller Pie

Foster Wheeler Ltd. (FWLT) is incorporated under the laws of Bermuda, with operational headquarters in Clinton NJ, and is a holding company that owns the stock of its various subsidiary companies. Foster Wheeler designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, etc.

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, appears to finally be slowing, if not reversing. In addition, given the now-declining demand for power as well as the drop in the cost of oil and gas, the need for additional solid-fuel industrial boilers may also be constrained.

Consequently, now that these uncertainties have crept into global financial expectations, we have maintained our Hold opinion on FWLT as this level. Our six-month target price is based on current market conditions, which recently have been known to change quickly and erratically.

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