DA Davidson lifts target, reiterates Buy
DA Davidson has raised its price target on Fluor Corp. (NYSE: FLR) to $60 from $55 and maintained a Buy rating on the stock. The revised target equates to about 16% upside relative to the company’s current share price of $51.70. Fluor shares have recently shown notable momentum, gaining 10.88% over the last week and rising 27.78% year-to-date.
Drivers behind the change
The firm said its updated outlook incorporates Fluor’s guidance for the fourth quarter of fiscal 2026 and the company’s activities around monetizing its small modular reactor (SMR) assets. In DA Davidson’s view, these developments should help clarify Fluor’s strategic direction over time and open room for growth in several end markets, including energy, power, mining and pharmaceuticals.
DA Davidson pointed to analysts’ expectations, as reflected in InvestingPro data, that Fluor will be profitable this year with an EPS forecast of $2.48 for fiscal 2026. The firm argued that opportunities in the cited sectors can spur an inflection in the company’s backlog and help support convergence in valuation toward peers in the industry.
Valuation and balance-sheet context
The $60 price target corresponds to 12 times DA Davidson’s estimate of Fluor’s 2026 EBITDA and 10 times its estimate for 2027 EBITDA. That valuation framework takes into account a pro forma balance sheet position following fourth-quarter SMR monetization and the current value of Fluor’s remaining ownership stake in SMR.
DA Davidson also highlighted Fluor’s liquidity and broader financial stability, citing a current ratio of 1.91 and an Altman Z-Score of 3.64. Those metrics indicate that the company’s liquid assets exceed near-term obligations and that it exhibits a degree of financial resilience.
Known variability and tax considerations
The analyst house acknowledged that valuation remains sensitive to changes in the prevailing equity value of the SMR business. DA Davidson further noted tax consequences associated with Fluor’s monetization of its remaining SMR stake, and it said ongoing results will continue to reflect both operating performance and financial impacts from legacy projects.
Research and wider analyst context
DA Davidson described itself as constructive on Fluor’s medium-term and long-term prospects, a view that aligns with an InvestingPro tip pointing to expected growth in net income this year. The same InvestingPro reference also notes that, despite anticipated profitability, Fluor currently trades above its Fair Value estimate. For investors seeking additional company-level analysis, InvestingPro provides a Pro Research Report covering Fluor and other US-listed names.
Recent quarterly results
Fluor reported fourth-quarter 2025 results that modestly missed analyst expectations. The company posted an EPS of $0.33, trailing the forecast of $0.35, and saw revenue of $4.18 billion versus an expected $4.26 billion. Despite those shortfalls, Fluor communicated optimism about its strategic initiatives and a positive outlook for 2026. The company’s shares have shown resilience in recent trading, though the focus of the analysis remains on underlying financial and strategic developments.
Contextual note
The information above reflects DA Davidson’s updated view and the company-reported results cited. The firm’s outlook and valuation assessment emphasize SMR monetization, sector opportunities and balance-sheet strength as central elements in its thesis for Fluor.