With Foster Wheeler (FWLT), the goal is more power for more people

Readers of this space know that the preferred sectors include oil services and infrastructure stocks, and when one can combine the two, it's like a double header at Yankee Stadium (or two chamber concerts at Lincoln Center). Foster Wheeler fits the aforementioned bill.

Foster Wheeler (NASDAQ: FWLT) provides design, engineering, procurement, construction, and project management services for oil/natural gas processing facilities. The company also designs and builds steam generating and auxiliary equipment for electric power generating stations and industrial markets around the world.

Analysts expect 2007 revenue to increase a remarkable 35%-40%, with a 20%-25% gain seen for 2008 on continued, strong Asia-Pacific and Middle East capital spending. Further, increasing demand for FWLT's preferred power generation system adds to the mix. The Reuters F2007/F2008 EPS consensus estimates FWLT for are $5.92/$7.00.

The risks: A slowdown in Europe (more than 50% of revenue) or emerging market demand with hurt FWLT's results. Analysts also have their eye on the appearance of possible supply/labor shortages down the road.

The First Call mean rating for FLWT is: Buy. [5 firms.] Mean 2008 target: $176.00. [high: $190, low: $150.]

Stock Analysis: Foster Wheeler is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from FWLT's shares. Sell / Stop Loss if you to purchase shares in this company: $95.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.