DA Davidson Raises Price Target on Layne Christensen (LAYN), Strong Demand for Minerals Exploration Drilling Services

DA Davidson is maintaining its Neutral rating on shares of Layne Christensen (NASDAQ: LAYN), but is raising its price target from $32 to $33.

The company released its Q1 results with earnings of $0.66 per share. The firm notes that the gain is driven by improved contributions from the Mineral Exploration segment.

Near-term the firm forecasts that segment earnings will remain near current levels, while beyond 2011 it expects margins to decline modestly from recent peak levels as capacity is drawn into this market.

LAYN has commented on acquiring new oil or gas properties, but the firm notes that it has had difficulty finding opportunities in the current market environment.

DA Davidson is raising its 2012 EPS estimate from $1.60 to $2.06 and is maintaining its 2013 estimate of $1.95.

For more ratings news on Layne Christensen click here and for the rating history of Layne Christensen click here.

Shares of Layne Christensen closed at $30.20 yesterday.

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