S&P Capitall CUT!!?? the don't know math (probably shorting , get caught:) )
Backlogs for 2 years , low PE , 10% short ....best configuration for UP,UP,UP
- our 12-month target price to $45 from $56, valuing the shares at 8.9X our '16 EPS estimate of $5.06 (cut today from $5.12). This is below peers, and below the company's ten year average P/E, reflecting current difficult operating environment. CBI Q1 EPS of $1.01 vs. $1.21 missed our $1.14 estimate and the Capital IQ consensus of $1.21. Revenues were weaker than we expected and new awards were down sharply. However, CBI still has a sizable backlog and we see demand picking up in current quarters. Moreover, we find the shares attractively valued at about 7X forward EPS.
New awards for the first quarter were $1.2 billion with a backlog of $21.2 billion.
At quarter end, cash and cash equivalents were $641 million, an increase of $294 million from the quarter-end balance for the first quarter 2015 and over $90 million from the year-end balance for 2015. In addition, during the quarter, total debt was reduced by $120 million from the year-end balance for 2015. we expect our new awards, revenue and earnings to progressively improve during the year, and we remain on track to perform within our guided ranges for 2016