Positive Outlook for Fluor: Buy Rating Backed by Strong Backlog and Strategic Management

Fluor (FLR – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Andrew Kaplowitz from Citi maintained a Buy rating on the stock and has a $47.00 price target.

Andrew Kaplowitz has given his Buy rating due to a combination of factors that indicate a positive outlook for Fluor’s financial performance. The company’s earnings trajectory appears to be on a solid path, supported by a robust backlog composition that is largely reimbursable and higher margin. This is particularly evident in sectors like life sciences, mining, and data centers, where the backlog has tripled since 2021.
Furthermore, despite potential challenges such as tariff-related impacts on customer behavior, Fluor’s management has demonstrated a constructive approach to project activities and highlighted their competitive edge through adept supply chain strategies. The company’s focus on operational discipline and shareholder-friendly capital deployment, including potential share repurchases and monetization of NuScale, further supports the expectation of an improved earnings trajectory over time.