WorleyParsons (WOR) Shares Tip of the Day

WorleyParsons (WOR) shares have a retained Buy 2 shares Recommendation and a share price target of $25 from shares analyst UBS. The company have announced that first half profits for fiscal 2007 will be more than 15% higher on a sequential basis. This equates to 45% on a pcp basis. The group also noted that it expected further growth in the second half of fiscal 2007. UBS have forecasts were based on 10% sequential growth, hence we are increasing our 2007 forecasts by 10% and our 2008 forecasts by 3%. WOR has separately announced the purchase of SEA Engineering for US$25m. SEA is a Houston based design and engineering group specialising in floating offshore facilities. This is an area where WOR has historically been underrepresented. The purchase price represents 5x average EBIT. The analysts are increasing their valuation by around 5% to $25-26/share. Our share price target has been similarly increased.

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. WorleyParsons is a leading provider of professional services to the energy, resources and complex processes industries. John Grill is the CEO of Worley Parsons and Ron McNeilly is the Chairman. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade WOR. Check your charts and good luck with your share trading!