On Monday, Truist Securities adjusted its outlook for Fluor Corporation (NYSE: NYSE:FLR), a leading engineering and construction firm. The price target for Fluor's shares has been raised to $47.00, up from the previous target of $46.00. Despite this change, the firm's Buy rating on the stock remains steadfast.
Truist Securities' decision comes without any alterations to their earnings projections for the upcoming years. The analyst's forecasts for Fluor's adjusted earnings per share (EPS) are consistent, remaining at $2.90 for FY2024, $3.20 for FY2025, and $3.50 for FY2026.
The increased price target is based on a valuation that includes 8.5 times the projected adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for FY2025, brought to present value, alongside 15.8 times the forward EPS for the same fiscal year, also discounted to present value.
The analyst's statement reiterated confidence in Fluor's stock, underscoring the unchanged earnings estimates and the rationale behind the revised price target. The valuation reflects expectations of the company's financial performance over the next couple of years and suggests a positive outlook on the stock's potential.
Fluor Corporation, with its focus on engineering, procurement, fabrication, construction, and maintenance, has been a significant player in the industry, and the updated price target from Truist Securities indicates a belief in the company's continued growth and profitability.
InvestingPro Insights
Fluor Corporation's (NYSE: FLR) recent financial performance and market valuation offer a comprehensive view for potential investors. According to InvestingPro data, Fluor holds a market capitalization of approximately $6.62 billion, with a Price/Earnings (P/E) ratio of 24.25, reflecting investor sentiment on its earnings capacity. In the last twelve months as of Q1 2024, the company's revenue growth was 7.53%, indicating a steady increase in its business activities. Furthermore, Fluor's gross profit margin stands at 3.97%, which aligns with the industry's competitive landscape.
Two InvestingPro Tips highlight Fluor's financial health and future outlook. Firstly, the company's liquid assets surpass its short-term obligations, suggesting a solid liquidity position. Secondly, analysts predict that Fluor will be profitable this year, which is corroborated by the company being profitable over the last twelve months. These insights reflect a stable financial base and a positive forecast for the company's profitability.
For those looking to delve deeper into Fluor's financial metrics and industry standing, there are additional InvestingPro Tips available at Investing.com/pro/FLR. Moreover, readers can take advantage of an exclusive offer by using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to even more in-depth analysis and data to inform their investment decisions.
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