Fluor initiated with a Sector Weight at KeyBanc

KeyBanc initiated coverage of Fluor with a Sector Weight rating. The analyst last night initiated coverage of 13 companies in the engineering and construction sector. E&C multiples have witnessed two step changes – one from de-emphasizing high-risk, cyclical, lumpy construction work, in favor of consistent outcomes, and the second from pivoting effectively to the emerging resilience, sustainability, and reshoring themes in pursuit of the “immense” climate and sustainability stimulus, the analyst tells investors in a research note. The firm believes the easy money has been made as the themes have played out via strong stock price returns, “but there are still selective investment opportunities. It focuses its investment recommendations on stocks that offer multiple expansion as they move up the tech/value chain, benefit from increasing investments in resilience and environmental efforts, are exposed to the energy transition theme and offer valuation upside.