Fluor Corp (FLR)

[eFinanceMarkets]

$FLR Fluor to suffer "modest hit" from SCANA's nuclear pullout, Citi analyst says

Fluor (FLR +0.4%) is steady after sinking to a 52-week low yesterday on news that SCANA was abandoning construction of its Summer nuclear project in South Carolina; FLR is the construction contractor for the project, as well as Southern Co.'s Voglte nuclear project in Georgia.

Citigroup's Andrew Kaplowitz keeps his Buy rating and $60 price target on FLR, believing the company will take "a modest hit" from SCG's decision but damage to the stock "should be fairly limited and contained."

Summer and Vogtle represented a combined $6.4B of backlog for FLR as of the end of Q1, with Summer comprising a smaller portion of the backlog, according to Kaplowitz, who estimates SCG's decision will cut FLR's annual EPS by $0.15 and backlog by $3B.