Update shared on27 Aug 2025
Analysts remain divided on Fluor’s valuation: while some see further upside from its NuScale Power stake and supportive macro trends, others believe the benefits are fully priced in following a sharp share rally, resulting in the consensus analyst price target holding steady at $49.89.
Analyst Commentary
- Bullish analysts see continued upside from Fluor’s valuation linked to its NuScale Power (SMR) stake, with upgraded price targets reflecting revised assessments after deeper analysis of this asset.
- Some analysts believe the value from NuScale is now fully priced into shares, limiting further upside and driving neutral-to-negative adjustments on the stock's rating.
- Improved market optimism stems from macroeconomic factors such as potential interest rate cuts, the Republican tax bill, and easing trade tensions, which are seen as positives for the industrial and infrastructure services sector.
- Tariff-related incremental costs are tracking in line with or below company guidance, with no further deterioration in demand from prior months, alleviating concerns about immediate negative impacts on earnings.
- The recent 47% share price rally is perceived by bearish analysts as reflecting valuation exuberance rather than a shift in underlying business fundamentals, prompting downgrades due to stretched valuation.
What's in the News
- Completed repurchase of 46.2 million shares (29.09% of shares outstanding) for $2.56 billion under the buyback program.
- Secured final notice to proceed as lead EPCM partner for Barrick Mining’s Reko Diq Project in Pakistan, a major copper-gold mine with over 40-year expected life and production targeted for 2028.
- LNG Canada, constructed by Fluor and JGC, shipped its first LNG export cargo; the project features a 14 million tonne annual capacity and includes one of the world’s largest LNG storage tanks.
- Dropped from multiple Russell growth indexes and the Russell Small Cap Comp, but added to the Russell 2000 Value-Defensive and Defensive indexes.
Valuation Changes
Summary of Valuation Changes for Fluor
- The Consensus Analyst Price Target remained effectively unchanged, at $49.89.
- The Discount Rate for Fluor remained effectively unchanged, at 8.56%.
- The Future P/E for Fluor remained effectively unchanged, moving only marginally from 16.84x to 16.85x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.