Morgan Joseph Reiterates a 'Buy' on Great Lakes Dredge & Dock (GLDD); Raises PT

June 17, 2009 9:51 AM EDT

Morgan Joseph reiterates a 'Buy' rating on Great Lakes Dredge & Dock (Nasdaq: GLDD). Price target increased from $5.50 to $6.50.

Morgan analyst says, "We are increasing our price target on GLDD shares to $6.50 as we have shifted our valuation to be based upon our 2010 projections instead of our 2009 estimates. We continue to have a favorable view on the near-term incremental domestic dredge spending from the Army Corps of Engineer's Federal stimulus funding. We are also positive on Great Lakes' longer-term opportunity related to a resolution expected to be in the next WRDA bill that designates 100% of the Harbor Maintenance Trust Fund to port and channel maintenance, which could be a significant contributor to long-term growth of the US dredge industry, and be enacted sometime in 2010. Furthermore, we believe that the rebound in oil prices should provide stability in the Middle Eastern dredge market, which gives us greater confidence that contracts in Bahrain will more likely proceed vs. being canceled, which should help allay concerns over international utilization over the next few quarters."

To see more analyst ratings on GLDD Click Here.

Great Lakes Dredge & Dock Corporation (Great Lakes) is a provider of dredging services in the United States.

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