Earnings at Fluor (NYSE:FLR), Foster Wheeler (Nasdaq:FWLT), Jacobs Engineering (NYSE:JEC), SNC-Lavalin Reach Inflection Point Says Canaccord

In the engineering, procurement, and construction universe covered by Canaccord Genuity, they see earnings at Fluor (NYSE:FLR), Foster Wheeler (Nasdaq:FWLT), Jacobs Engineering (NYSE:JEC) and SNC-Lavalin as having reached an inflection point.

Canaccord says, "In our opinion, earnings and multiples have reached an inflection point for the four engineering, procurement, and construction (EPC) equities in our coverage universe: Fluor (FLR), Foster Wheeler (FWLT), Jacobs Engineering (), and SNC-Lavalin.

"Catalysts abound at SNC owing to its diversified business model and increasingly international geographic footprint. We reiterate our BUY rating on the stock and increase our target price 8% to C$70.00 as we increase our target valuation�multiple to 19x cash-adjusted 2012E E&C EPS (then add C$13/share for ICI’s and C$6/share in freehold cash). We raise our target price on Jacobs to $62.00 from $50.00 and reiterate our BUY rating. Our new target is based on 18x (from 14x) cash-adjusted CY2012E EPS + $11/share in freehold cash. We increase our Foster Wheeler target price to $43.00 from $38.00 and reiterate our BUY rating. Our new valuation multiple is 16x 2012E EPS from 14x previously (plus $7.50 in freehold cash). We reiterate our BUY rating on Fluor and increase our target price to $79.00 from $67.50. We now value Fluor using 19x cash-adjusted 2012E EPS from 16x previously (plus $8.50 in freehold cash)."

Fluor closed Friday at $71.19, gaining $1.01, or 1.44 percent. Foster Wheeler closed at $37.32, up $0.25, or 0.67 percent. Jacobs Engineering closed at $51.02, gaining $2.27, or 4.66 percent.