AMFW.L Share News (AMFW)

(ShareCast News) - Amec Foster Wheeler was under the cosh on Tuesday as Barclays downgraded the stock to 'equalweight' from 'overweight' and cut the price target by 17% to 500p.Barclays pointed out that the group is currently undergoing a much deeper introspection than previously expected, in a market worse than expected, with the process not likely to be finalised until March 2017."This process will include divestments and likely investments, not only in the business systems and processes, but also potentially inorganically. As such, despite the company articulation of a GB£100m cost saving programme, a degree of uncertainty has been added to the investment case."The bank said the level of investment needed is unclear and the capital structure needed has been called into question.Barclays gave Amec credit for releasing an update in October rather than "muddling to an unsatisfactory update" in November, as planned."By laying itself bare, it opened itself to criticism of over promising too early, a fair comment in our opinion. That said, there was no clarity on the potential scope of the company post the reorganisation at the August update as well, yet the market accepted it."Shares in the oil services company tumbled last week after it said it expected further declines in the oil and gas market and postponed its planned capital markets day as it needs more time to come up with a strategy. "The issue is with potential balance sheet actions now. Potentially needed is that the restructuring is not confined to organic cash flows. Hence, what investors will pay for exposure to the still uncertain future is now harder to define. As such, like the company, we feel it prudent to step back," Barclays said.However, it said that in the longer term, the investments and changes the company is making are likely to be for the good.At 0935 GMT, the shares were down 3.9% to 429.90p.