Citi upgrades Fluor to Buy on better execution, backlog

Citi upgraded Fluor (FLR) to Buy from Neutral with a price target of $65, up from $52. The company’s outlook and execution “continues to evolve positively” and its backlog has increased over the last several quarters, the analyst tells investors in a research note. The firm thinks the company’s book-to-bill should pick back up to over one-times toward the middle of 2025. However, the stock “could still react reasonably well” beforehand given Fluor’s improved execution and relative valuation discount to the S&P 500, contends Citi. The firm believes the stock is not pricing in the potential for the company to monetize at least several hundred million dollars from its 50% equity stake in Nuscale Power (SMR).