Ahead of the Bell: Fluor's prospects draw praise

The Irving, Texas-based company now expects to earn from $3.70 to $3.80 per share for the year. Its previous target, issued Aug. 11, was for profit of $3.39 to $3.54 per share.

Fluor also said it has $36.5 billion in backlog on its books, up 31 percent from the same time last year.

Analysts expect income of $3.51 per share, according to Thomson Reuters.

For 2009, Fluor expects profit of $3.90 to $4.20 per share. Analysts expect $4.01 per share.

Morgan Joseph analyst Richard Paget, who has a "Buy" rating on the shares, said he continues to believe that Fluor's business relationships and technical capabilities "leave it well positioned to take advantage of demand pockets in various end markets, which should help it weather this tough economic climate better than some of its competitors."

He set a $61 price target on the shares, saying they are undervalued.

Friedman, Billings, Ramsey analyst Alex Rygiel analyst also cited the stock's "attractive valuation."

"Even if the credit crisis causes new awards to be down significantly over the next several quarters or years, Fluor's current backlog provides enough visibility such that financial results through 2010 should be solid, which we believe will lead to an increase in stock price over time," he said.

"For the long-term we believe Fluor is also well positioned for the next construction cycle, nuclear."