Foster Wheeler Downgraded To Sell

Foster Wheeler (FWLT) is based in Zug, Switzerland, but its operational headquarters are in Clinton, New Jersey. The Company operates through two business groups: the Global Engineering and Construction Group - or Global E&C Group - and the Global Power Group.

The global economic boom — coupled with the attendant demand for oil, gas, petrochemicals and refined products — that stimulated investment in new and expanded plants over the previous few years has finally come to a screeching halt. In addition, with 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 is also quite constrained.

Consequently, given that these major uncertainties have seriously intruded into global financial expectations, we have changed our opinion on FWLT to Sell. Our six-month target price is based on current market conditions, which recently have been known to move quickly and erratically.

Subscribe by RSS Subscribe by Email