Goldman Sachs Maintains $40 Target On FWLT

Foster Wheeler Ltd. FWLT reported 4Q2010 EPS of $0.31 vs. GS/consensus expectations of $0.40/$0.47, driven primarily by a lower-than-expected E&C scope EBITDA margin of 9.9% (GS: 15.0%), Goldman Sachs reports. “The company also guided to a lower-than-expected 2011 E&C scope EBITDA margin of 13%-15% (GS: 16.5%) and Power margin of 14% 16% (GS: 17.0%),” Goldman Sachs writes. “On a positive note, scope awards of $981 mn were stronger than expected (GS $830 mn), implying a book-to- bill ratio of 1.50.” Goldman Sachs maintains its 12-month, $40 price target, which is based on 19.0X 2012E EPS vs. 16.0X, previously. Foster Wheeler Ltd. closed Thursday at $35.44.