Tuesday, November 23, 2010

UBS (NYSE:UBS) Reiterates "Neutral" Rating on Willbros (NYSE:WG)

UBS (NYSE:UBS) sees challenges ahead for Willbros Group (NYSE:WG), as there are little catalysts to boost the company in the short term. Consequently they maintain their "Neutral" rating on them at this time.

UBS said, "WG reduced 2010 rev guidance to $1.1-$1.2b, from $1.2-$1.3b, due to weak T&D. EPS guidance was raised to $0.25-$0.30, but includes the earnout contingency reversal benefit we calculate at $0.96. Overall, the FEP execution was even better than we expected, but the weak T&D segment was disappointing. The Downstream segment is slowly regaining profitability, but the market is still challenging."

Willbros closed Monday at $6.99, dropping $0.10, or 1.41 percent. UBS lowered their price target on them from $9 to $7.75.

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