UPDATE 1-JP Morgan removes Pool Corp from focus list
(Recasts; adds details)
Nov 4 (Reuters) - JP Morgan Securities removed swimming pool products distributor Pool Corp (POOL.O), from its focus list, but maintained an "overweight" rating, saying it saw the company's gross margins improving in 2009.
"Pool should see continued shift towards high-margin replacement sales, which now constitute 80 percent of the business, and benefit from a reduced cost structure, " said analyst Curt Woodworth, who has a price target of $24 on the stock.
Pool was removed from the list in favour of engineering and construction company Fluor Corp (FLR.N), which the brokerage rates "overweight.".
"In our view, both the short term and long term fundamentals for Fluor's Oil and Gas and Power businesses remain strong and we believe the recent correction in the share price is overdone," Woodworth said in a note to clients
Woodworth has a price target of $46 on Fluor. (Reporting by Arup Roychoudhury in Bangalore; Editing by Jarshad Kakkrakandy) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))
