Goldman (NYSE:GS) Downgrades Fluor (NYSE:FLR) Citing Write-downs

Saying execution risk and uncertainty concerning future write-downs could put downward pressure on the multiple of Fluor Corp. (NYSE:FLR), Goldman Sachs downgraded them from "Buy" to "Neutral."

With the $163 million charge against its Greater Gabbard Offshore Wind Project, Goldman said "we expect uncertainty surrounding future write-downs to suppress FLR's multiple."

At this time the cost over-runs for Flour with Gabbard is their responsibility because they priced it as a lump sum. Historically when these write-downs occur in this fashion, they continue on until the project being worked on is completed.

Goldman raised their EPS for the year on Flour from $3.05 to $3.25.

Flour closed at $48.99 Tuesday, dropping $0.24, or 0.49 percent. Goldman lowered their price target on Flour from $57 to $53.