J.P. Morgan Reports Q1 Earnings Preview On The Punch List

According to J.P. Morgan, The Punch List CBI Q1 earnings results are expected to help validate the sustainability of the upturn in E&C bookings it saw materialize in 2H10, with BtB hopefully continuing to climb. J.P. Morgan said that key topics could include anecdotes on individual end markets, including oil & gas (particularly LNG, oil sands and refining), power (including T&D and nuclear) and government (Federal, public infrastructure). “The E&Cs are trading at 2011E/12E average P/Es of 17x/15x, slightly below historical averages and levels that offer room for upside, assuming bookings continue on an upward trajectory. Our top picks are CBI, JEC, FLR, PWR, MG and MLM.” The Punch List closed yesterday at $38.75.