Zacks Investment Research downgraded shares of Foster Wheeler AG (FWLT) from NEUTRAL to UNDERPERFORM on March 11, 2013, with a target price of $19.00.
We are downgrading our recommendation on Foster Wheeler from Neutral to Underperform with a target price of $19.00. The company reported weak operating performance in the fourth quarter of 2012. Both earnings and revenues were down 2.7% and 34.9% respectively, year over year. Further, both the operating segments of the company had reported decline in revenues, due to below average new orders during the quarter. In addition, Power generation markets remained weak globally. Unstable environmental regulations in Europe and a similar situation, along with low natural gas prices, in the U.S. also have delayed the retrofit markets. Moreover, the markets for renewable power also have been depressing in many regions due to overbuilding during the past decade and the current government reluctance to continue subsidization.
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