Wedbush Remains Sidelined as Headwinds Hindered Linday Corp.'s (LNN) 1Q

Wedbush reiterated a Neutral rating and $69.00 price target on Lindsay Corporation (NYSE: LNN), following the company's 1Q16 earnings report. Lower commodity prices and unfavorable FX continue to challenge Lindsay’s domestic and international irrigation businesses. While top-line sales of $121.6 million were approximately $7 million below estimates, primarily in the irrigation segment, adjusted EPS was in-line with expectations owing to better than-expected infrastructure margins and a lower tax rate. Adjusted EPS was $0.55 versus consensus of $0.55.

Analyst David Rose commented, "Although the irrigation sector appears to be approaching the bottom, lower commodity prices and unfavorable FX continue to challenge Lindsay’s domestic and international irrigation businesses. Meanwhile, the infrastructure business will likely remain flattish given the lack of significant QMB projects. On a positive note, the recently passed highway bill should benefit the infrastructure business over time while underlying margins have held up well. Given LNN’s valuation, however, we would continue to remain on the sidelines until there is a more favorable risk/reward dynamic."

For an analyst ratings summary and ratings history on Lindsay Corporation click here. For more ratings news on Lindsay Corporation click here.

Shares of Lindsay Corporation closed at $74.94 yesterday.

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