Boenning & Scattergood Downgrades Layne Christensen (LAYN) to Neutral; Min-Ex Performing Well, but Potentially Late in Its Cycle
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Price: $15.41 --0%
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Boenning & Scattergood downgraded Layne Christensen (NASDAQ: LAYN) from Outperform to Neutral.
Boenning analyst says, "LAYN reported earnings above Boenning and consensus estimates driven by strength in its Mineral Exploration business. Min-Ex has benefited from a strong rebound in base metal demand / prices post the 2008 – 2009 global recession. Margins in the group have rebounded substantially and are approaching peak levels. We believe there may be
room for incremental improvement, but may be limited as wage inflation and training of additional workers to meet demand will over time become a drag on margins and efficiencies. However, management believes current demand for rigs is ‘paced’ and not over heating. Revenues will continue to increase within Layne’s affiliate group through additional rigs and an ‘add a rig’ strategy within its wholly owned operations. While on the surface everything appears well, we are concerned about recent economic and market volatility.
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 $26.24 yesterday.
Boenning analyst says, "LAYN reported earnings above Boenning and consensus estimates driven by strength in its Mineral Exploration business. Min-Ex has benefited from a strong rebound in base metal demand / prices post the 2008 – 2009 global recession. Margins in the group have rebounded substantially and are approaching peak levels. We believe there may be
room for incremental improvement, but may be limited as wage inflation and training of additional workers to meet demand will over time become a drag on margins and efficiencies. However, management believes current demand for rigs is ‘paced’ and not over heating. Revenues will continue to increase within Layne’s affiliate group through additional rigs and an ‘add a rig’ strategy within its wholly owned operations. While on the surface everything appears well, we are concerned about recent economic and market volatility.
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 $26.24 yesterday.
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