Wedbush Cuts Price Target & Estimates on Insituform Technologies (INSU), Tough Market Conditions
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Price: $11.66 --0%
Rating Summary:
4 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is reiterating its Outperform rating on shares of Insituform Technologies (NASDAQ: INSU), but is lowering its price target from $32 to $22.
The firm believes that shares are attractive based on its 2012 EPS estimate, but doesn't anticipate multiple expansion due to a lack of visibility in achieving those earnings.
To reflect the company's new guidance of $1.30-$1.40 for 2011, Wedbush is cutting its 2011 EPS estimate from $1.74 to $1.33. It forecasts that current margin pressure will weigh on 2012 results and is lowering its 2012 estimate from $2.17 to $1.86.
The company is increasing its frequency of operations reviews and will likely take steps to reduce its fixed-cost structure, in an effort to improve crew productivity.
An analyst at Wedbush comments, "meanwhile, we believe the energy and mining business remains robust and could offer upside to our estimates. However, this is unlikely to make a material contribution until 2012."
For more ratings news on Insituform Technologies click here and for the rating history of Insituform Technologies click here.
Shares of Insituform Technologies closed at $18.68 yesterday.
The firm believes that shares are attractive based on its 2012 EPS estimate, but doesn't anticipate multiple expansion due to a lack of visibility in achieving those earnings.
To reflect the company's new guidance of $1.30-$1.40 for 2011, Wedbush is cutting its 2011 EPS estimate from $1.74 to $1.33. It forecasts that current margin pressure will weigh on 2012 results and is lowering its 2012 estimate from $2.17 to $1.86.
The company is increasing its frequency of operations reviews and will likely take steps to reduce its fixed-cost structure, in an effort to improve crew productivity.
An analyst at Wedbush comments, "meanwhile, we believe the energy and mining business remains robust and could offer upside to our estimates. However, this is unlikely to make a material contribution until 2012."
For more ratings news on Insituform Technologies click here and for the rating history of Insituform Technologies click here.
Shares of Insituform Technologies closed at $18.68 yesterday.
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