Piper Jaffray Downgrades Lindsay Corporation (LNN) to Underweight

Piper Jaffray downgraded Lindsay Corporation (NYSE: LNN) from Neutral to Underweight with a price target of $71.00 (from $77.00).

Analyst Michael E. Cox commented, "We are downgrading shares of LNN from Neutral to Underweight as we continue to believe that demand for irrigation equipment will be soft due to the lower grain price environment. We expect another year of double-digit declines in irrigation sales in FY15. Further, we believe that with the potential for grain prices to be range bound through 2016 that pivot demand will likely remain suppressed, where we are modeling only modest irrigation sales growth in FY16 to arrive at our Street low EPS estimate. LNN continues to be a heavily shorted stock, but we believe shares will be under pressure as Street estimates are revised lower and because the recent lift in the stock stemmed from a one-time benefit resulting in a stronger than expected 4Q. Using the historical trough multiple of 14x forward earnings, our price target moves to $71 and we believe valuation will remain depressed."

The firm cut FY 2016 EPS from $4.50 to $4.07.

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 $79.86 yesterday.

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