gaining momentum, page-3

Citi 26/02/2009 3 Hold, High Risk $14.50 - 7.0%
The broker can't figure out why WorleyParsons would suddenly make $12m out of forex contracts as it never has before, and the broker doubts it will happen again. That aside, the result is a trap for young players who do not appreciate the oil price to profit lag effect. If you think the second half's going to be as good as the first you've got another thing coming, the broker implies.

The broker has set its earnings forecasts 35% below consensus, even after increasing estimates, but has increased the target from $14.00 to $14.50.

BA-Merrill Lynch 26/02/2009 3 Neutral $17.05 9.4%
The 1H09 net profit came in ahead of both the broker's estimate and market consensus, with no one-off items. The dividend was a little lower than consensus, but the broker thinks this is wise given evidence of margin pressures and management's unwillingness to now confirm its outlook for future earnings.

Still, the balance sheet in good shape, with cash realisation improving. All up, the broker's forecast, valuation and recommendation are unchanged, but the broker thinks earnings momentum will slow through 2H09 and earnings will decline in FY10, so Neutral maintained.

JP Morgan 26/02/2009 1 Overweight $19.68 26.2%
Target $19.68 (was $19.43). Interim earnings were better than the broker had forecast and in its view shows the company has a strong business model.

Minor changes to its numbers result in a slight increase in price target and no change to the broker's Overweight rating.

UBS 26/02/2009 1 Buy $33.00 111.7%
Interim earnings were lower than the broker had forecast but above market consensus and post the result it makes no major changes to its numbers.

With the stock being priced as though it was an oil producer rather than a company servicing the sector the broker retains its Buy rating post the result.

Credit Suisse 26/02/2009 3 Neutral $16.00 2.6%
Target $16.00 (was $18.75). Earnings were in line with the broker's expectations but it continues to see a difficult operating environment for the company.

With margins likely to come under increased pressure the broker has reduced its earnings estimates and this pushes down its price target, but not by enough to impact on its Neutral rating.

Deutsche Bank 26/02/2009 1 Buy $20.65 32.5%
Company's result proved better than expected and Deutsche Bank argues this is not reflected in the share price. Buy reiterated.

The broker believes the shares are currently trading at a 20% discount to the market with prospects of being a beneficiary of any uptick in capex by oil and gas companies. The analysts believe management's investor presentation has likely quelled any concerns with regards to FY10.

Target/valuation has risen to $20.65 from $19.90 previously.