UPDATE: Global Hunter Securities Downgrades Dresser-Rand Group (DRC) to Accumulate

(Updated - August 6, 2014 10:14 AM EDT)

Global Hunter Securities downgraded Dresser-Rand Group (NYSE: DRC) from Buy to Accumulate with a price target of $68 (from $71). Analyst Mark Brown noted upstream headwinds.

"We continue to believe that DRC is well positioned for significant growth over the next several years given its differentiated technology offerings across upstream, midstream and downstream end markets. Further, the current quarter’s commentary suggests an improvement in upstream bookings in July that could support a more bullish view. Nonetheless, the potential for ongoing headwinds facing upstream project spending coupled with a diminishment of investor risk appetite has prompted us to revisit our valuation," said Brown.

"We have reduced our price target from $71 to $68 based on a 10.5x multiple on our 2015 EBITDA estimate (implying a 20.9x multiple on our 2015 EPS estimate). The narrowing of the gap between our price target and the current share price prompts the decline in our rating from Buy to Accumulate. Upside potential exists if the stock is targeted by a corporate activist or if acquired by a large industrial concern, but this speculation is well known and its outcome difficult for us to forecast," he added.

For an analyst ratings summary and ratings history on Dresser-Rand Group click here. For more ratings news on Dresser-Rand Group click here.

Shares of Dresser-Rand Group closed at $59.76 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Boston Beer Company (SAM) PT Lowered to $325 at Jefferies
• Quest Diagnostics (DGX) PT Raised to $145 at Evercore ISI
• Fiserv (FI) PT Raised to $175 at TD Cowen