Morgan Joseph Upgrades Great Lakes Dredge & Dock Corporation (GLDD) to Buy

November 11, 2008 9:14 AM EST

Morgan Joseph upgrades Great Lakes Dredge & Dock Corporation (Nasdaq: GLDD) from Hold to Buy. Price target $6.

Morgan analyst says, "We are raising our rating on Great Lakes Dredge & Dock to a Buy as we believe demand for dredging in the US should continue to increase into 2009 and 2010. The dredging bid market YTD 2008 has already matched the amount for the full year 2007, suggesting we may have seen a bottom in spending last year. The company's dredging backlog grew to $453.2mm in 3Q08, up 55.8% Y/Y and 27.4% sequentially, which helps support this notion. Furthermore, we believe the incoming Democratic administration will place a greater focus on improving domestic infrastructure, which should help long-term demand for dredging over the next several years. In the nearer term, we expect another stimulus package to be passed by Congress, which should include a large portion of infrastructure spending, of which roughly $1bn could be earmarked for dredging projects. Finally, we see additional opportunities stemming from the Panama Canal expansion, which at the very least, could utilize existing capacity and favorably impact the US dredge market over the next few years."

Great Lakes Dredge & Dock Corporation (Great Lakes) is a provider of dredging services in the United States.

Related Categories

Upgrades

Stocks Mentioned

Related Entities

• Morgan Joseph

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?