UBS Maintains a 'Sell' on Layne Christensen (LAYN); EPS Beat Driven by Core Mining Business

UBS maintains a 'Sell' on Layne Christensen (NASDAQ: LAYN), PT increased by $1 to $27.

UBS analyst says, "Mgmt expects the strong FQ1 Minex activity to continue for the remainder of the year. FQ2 may dip slightly from FQ1; however, planned capacity additions in LatAm should boost results starting in the 2nd half of FY12. Given strength in Minex, mgmt sees Water as the biggest variable in future results. The base water drilling business appears to be improving (ex-Afghanistan) and Reynolds bidding activity is up, but Reynolds backlog declined y/y and pricing remains competitive."

"We view FQ1 positively due to the favorable Minex results and outlook, but we are cautious on the balance of the business. We note the risk of fines and/or profit disgorgement related to the FCPA, and we also see some risk from China slowing."

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 $28.05 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Freedom Broker Upgrades John B. Sanfilippo & Son, Inc. (JBSS) to Buy
• Oppenheimer Reiterates Outperform Rating on NVIDIA (NVDA) Into EPS
• Jefferies Downgrades Sunway Healthcare Holdings (SUNMED:MK) to Hold