Next Generation Research Downgrades AZZ Inc. (AZZ) to Neutral

June 5, 2009 4:05 PM EDT

Next Generation Research downgrades AZZ Inc. (NYSE: AZZ) to Neutral. Price target increased from $35 to $41.

Next Gen analyst says, "In Electrical and Industrial Products, the backlog is expected to decline over the first half of the fiscal year and the company is counting on some international projects being booked in the latter half of the year to help boost sales in fiscal 2011. While we view some of these business wins as likely given management's track record last year, the timing of these orders cannot be determined. In Galvanizing, operating margins are unsustainable at 4Q09 levels and are expected to decline from these levels over the course of fiscal 2010 given an expected slowdown in tonnage processed, competitive pricing pressure, and slightly higher zinc costs. We are introducing our FY2011 EPS estimate of $3.15 and maintaining our FY2010 estimate of $2.91."

To see more analyst ratings on AZZ Click Here.

AZZ incorporated (AZZ) is an electrical equipment and components manufacturer, serving the global markets of power generation, transmission and distribution, and the general industrial markets.

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