Standpoint Research Downgrades Foster Wheeler (FWLT) to Hold; Profit Taking

Standpoint Research downgraded Foster Wheeler (NASDAQ: FWLT) from Buy to Hold.

Analyst, Ronnie Moas, said, "Foster Wheeler shares have jumped 27% and are ahead of the S&P-500 by 2000 bps since our November 2 recommendation. The shares remain with significant upside, but we have decided to lock in the absolute and relative gains at this time. The shares are near the $24 target we set for 2012-2013 (that was probably a bit conservative). This completes our second round trip in this name. This is a good company and we hope to get a chance to reinstate FWLT at a later date. The shares are now trading at 18X trailing twelve months earnings; 16X estimates for 2011 and 13X estimates for 2012. We have a nice gain here and want to play it safe and protect the gain. We may be leaving some money on the table here, but the same could have been said regarding our prior exit … the shares dropped by > 15% the following week. With the VIX dropping to 20, and the market hitting six-month highs, we are a bit concerned the recent market rally may soon run out of steam and we want to lock in some gains on a few of our high-beta names."

For an analyst ratings summary and ratings history on Foster Wheeler click here. For more ratings news on Foster Wheeler click here.

Shares of Foster Wheeler closed at $23.17 yesterday.

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