Analyst Michael Feniger from Bank of America Securities reiterated a Hold rating on Fluor and increased the price target to $43.00 from $36.50.
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Michael Feniger has given his Hold rating due to a combination of factors impacting Fluor’s financial performance and outlook. The company experienced a significant decline in its stock price following disappointing second-quarter results, which included a notable drop in EBITDA and a reduction in full-year guidance. These results were influenced by cost overruns on projects and delayed capital spending from clients, leading to a cautious outlook for the remainder of the year.
Additionally, Fluor faces challenges with project execution, as seen in increased costs on several infrastructure projects and a shift in its strategy regarding the monetization of NuScale shares, which did not meet investor expectations. Despite a strong balance sheet, the muted project pipeline and uncertainties around trade policies and interest rates contribute to the Hold rating. Feniger acknowledges the company’s progress over the years but remains cautious due to these ongoing challenges.
Feniger covers the Industrials sector, focusing on stocks such as Deere, Caterpillar, and Construction Partners. According to TipRanks, Feniger has an average return of 10.9% and a 64.47% success rate on recommended stocks.