WorleyParsons (WOR) Shares Update

Submitted by Craig Strzelecki on 18 January, 2007 - 11:31

WorleyParsons (WOR) have a Buy 2 shares recommendation and a share price target of $24 from UBS' Shares Update. The share analyst have commented on the company's impressive new contract wins: Over the past six months the group has continued to win major new contracts across all divisions. These include LNG plants in Australia, petrochemicals in the US and Asia, nuclear and coal fired power stations in Europe and the US, and minerals projects in the Middle East. Many of these projects started as relatively small jobs, where Worley did pre-feasibility type work and then progressed to FEED and EPCM or PM jobs. At present there are a number of these small contracts that could become quite large over the next three to five years including Olympic Dam, petrochemicals in Asia, power stations in the US and Europe, and minerals in Australia. UBS believe that the combination of existing long-term, large-scale work and potential new projects underwrites growth for a number of years. While the stock looks far from cheap, we suspect that this type of growth is not factored into the share price.

WorleyParsons Limited is listed on the Australian Stock Exchange (ASX) under stock code WOR. You can view their investor website here. WOR was listed on the ASX on 28 November, 2002. Ron McNeilly is the Chairman of WorleyParsons and John Grill the current CEO. Worley Parsons is a provider of Professional Services to the Energy, Resource and Complex Process Industries. They are a dynamic company whose success has resulted from outstanding project delivery for clients around the world. In doing so they work through all five phases of an asset's lifecycle, customising their services for each sector. Read previous news and stock recommendations for WorleyParsons (WOR). Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!