Fluor: Improved Cash Flows Have Paved the Way to Return More Cash to Shareholders

We are maintaining our $54 per share fair value estimate after reviewing Fluor’s April 2 strategy update presentation. We think the company doesn’t get enough credit for its improved cash flow generation and upside from potential monetization of its equity stake in NuScale Power. Shares are currently trading at more than a 30% discount to our fair value estimate, which we see as an attractive entry point for patient investors who can stomach near-term volatility.