Barclays Capital has downgraded its recommendation on Amec Foster Wheeler (LON:AMFW) to ‘equal weight’ following last week’s surprise announcement, stating that “the company is undergoing a much deeper introspection than was previously imagined”.
Barclays added: “The issue is with potential balance sheet actions now. Potentially needed is that the restructuring is not confined to organic cash flows. Hence, what investors will pay for exposure to the still uncertain future is now harder to define. As such, like the company, we feel it prudent to step back.”
Analysts have reduced their price target to 500 pence per share.
At 1:46pm: (LON:AMFW) Amec Foster Wheeler PLC share price was -2.1p at 445.1p
Story provided by StockMarketWire.com