Shaw Could Win Oil Cleanup Contracts; Pritchard Ups Price Target (SHAW, FLR)

Pritchard Capital Partners analysts raised their price target for The Shaw Group SHAW to $40.00 from $31.50. The analysts believe that Shaw should win cleanup contracts in Louisiana. They said, "For every 1,000 workers that they employ, the company realizes a 4 cent bump in EPS per quarter, ~9% accretive. Heard rumblings of SHAW’s cleanup efforts starting at ~1,000 workers and potentially ramping up to ~10,000 workers." BP BP announced yesterday that it awarded Fluor Corporation FLR a cleanup contract in Alabama and Florida. Pritchard believes that the Louisiana cleanup effort will require much more manpower, and the contract should go to Shaw.