Jefferies Cuts Price Target on CECO Environmental (CECE) Despite Good Organic Growth

Jefferies maintained a Hold rating on CECO Environmental (NASDAQ: CECE), and cut the price target to $10.00 (from $12.00), following the company's 3Q earnings report. CECE reported organic sales growth of 4.5% in 3Q15. Book-to-bill ratio (ttm) is 0.94x. Bookings were largely flat and included a push-out of a $8.5M natgas turbine power OE order to October. Strong backlog is expected to support core sales growth in 4Q.

Analyst Bhupender Bohra commented, "3Q was good from organic growth perspective but flat organic bookings and further weakness in industrial spending environment implies increased risk to top-line. We're currently estimating flat organic sales in 2016. Margin expansion steps are in place but progression to 15% goal now seems beyond 2017. We maintain Hold on valuation."

For an analyst ratings summary and ratings history on CECO Environmental click here. For more ratings news on CECO Environmental click here.

Shares of CECO Environmental closed at $8.99 yesterday.

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