Gabelli Has Buy On Foster Wheeler

Gabelli & Co. is out with a research report on Foster Wheeler Ltd FWLT and it has a Buy rating after it reported earnings. In a note to clients, Gabelli & Co. writes, "While the quarter came in slightly above our expectations, we are lowering our 2011E and 2011P EPS estimates to $1.65 and $2.20, from $1.75 and $2.40, respectively, mainly due to continued weak margins in the E&C group. We continue to believe that FWLT is already on the road to recovery and believe that the E&C group will strongly improve margins in Q4-2011 and beyond. Shares remain inexpensive, trading at 16.4x 2011E and 12.3x 2012P earnings. In addition, FWLT is trading at a 46% discount to its 2012P PMV of $50." Shares of FWLT closed at $27.02 yesterday.