Wells Fargo Downgrades Allis-Chalmers Energy (ALY) to Market Perform; Closure Likely - Raising Valuation
ALY Hot Sheet
Rating Summary:0 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Wells Fargo downgrades Allis-Chalmers Energy, Inc. (NYSE: ALY) from Outperform to Market Perform. Raising valuation from a pre-merger announcement range of $2.90-3.45 to a band of $5.25-5.50.
Wells analyst says, "We expect the increasingly competitive Big 4 to limit the size and profitability ALY can achieve over the next 18 months, especially given its high leverage and inchoate sprawl of lower-end businesses. Even within this context, however, ALY's portfolio of tangible assets, and relationships, thanks to its well-connected, savvy insiders, point to intrinsic value meaningfully higher than its current enterprise value."
To see all upgrades/downgrades on shares of ALY, visit our Analyst Ratings page.
Shares are currently trading at $5.33
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
Wells analyst says, "We expect the increasingly competitive Big 4 to limit the size and profitability ALY can achieve over the next 18 months, especially given its high leverage and inchoate sprawl of lower-end businesses. Even within this context, however, ALY's portfolio of tangible assets, and relationships, thanks to its well-connected, savvy insiders, point to intrinsic value meaningfully higher than its current enterprise value."
To see all upgrades/downgrades on shares of ALY, visit our Analyst Ratings page.
Shares are currently trading at $5.33
Discover Wall Street's best ratings calls with the pros - Upgrade to Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- UPDATE: UBS Downgrades Wisconsin Energy (WEC) to Neutral; Taking Some Off The Table
- Canaccord Genuity Maintains a 'Hold' on Tiffany & Co. (TIF); Cutting PT and Estimates
- UPDATE: Williams Financial Group Upgrades Semtech Corp. (SMTC) to Buy; Check Again...Quarter Was Fairly Strong
Create E-mail Alert Related Categories
DowngradesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
