Fluor could be ready to soar, according to UBS. The firm upgraded the engineering and construction stock to buy from neutral in a Wednesday note, and upped its price target to $47 from $35. UBS’ new forecast implies 35.7% upside from Tuesday’s $36.62 close. Analyst Steven Fisher said the company has reached a key turning point after reaching a settlement with the U.S. Securities and Exchange Commission over allegations of improper accounting techniques. Fisher also remains bullish on the stock thanks to the company reach agreements to complete projects like the Gordie Howe Bridge and a liquefied natural gas pipeline in North America. “We think investors underappreciate FLR’s potential as it continues its turnaround. It has reached an inflection point on legacy risk concerns and is close to returning to more normalized margins or better after several sub-par years, while cash flow adds further upside,” Fisher said. The analyst added that Fluor could add as much as $5 per share of cash to the company’s balance sheet, while earnings begin to tick higher. “We see the next year ahead as the proof that the turnaround will translate into higher and more normalized earnings,” he said. “The stock has had a nice run from the bottom, but the prices have fairly reflected the risks to date; we think the stock price today reflects the company today, but not its potential over the next 1-2 years.” Fluor stock has ticked down 0.12% in 2023. Shares have outperformed in the past three months, however, jumping more than 16%. FLR YTD mountain Fluor year to date — CNBC’s Michael Bloom contributed to this report.