Thursday, September 17, 2009

Foster Wheeler Upgraded by Goldman Sachs

Interesting timing by Goldman Sachs (GS) considering FWLT has nearly doubled over the last couple of months and we've already noted that its broken above key technical levels in early August when it burst above $23. Possibly time to take some profits knowing how these upgrades work. Long term though FWLT is likely to benefit big time from the push for LNG in Australia. The Gorgon Project is a huge. Stone Fox is still betting that FWLT returns to old highs in the $70s so the $41 target is meaningless especially from a company that watched the stock bounce from $23 to $34 recently without uttering a word.

Foster Wheeler (FWLT Quote) upgraded at Goldman from Neutral to Buy. Company trades at a reasonable valuation and has leverage to Australia LNG growth. $41 price target.

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