Orion Marine Group (ORN) Bullish Stance Reiterated at FBR on Upbeat Outlook

FBR Capital analyst Alex Rygiel reiterated an Outperform rating and $18 price target on Orion Marine Group (NYSE: ORN) following Q1 results that were modestly better than the firm's estimates, due in part to some early project completions. Guidance for 2Q seemed a little light but they said this is mostly due to the expected gap in project completions and starts during the quarter. The outlook for the 2nd-hall remains positive, especially with the record backlog print at the end of the quarter.

Rygiel said, "We are adjusting our 2014 estimates but expect solid revenue growth and margin expansion starting in 2H14 and into 2015. We are leaving our 2015 EPS estimate unchanged. We reiterate our Outperform rating, based on the following: (1) strong private sector demand; (2) the passage of a WRDA bill that should improve USACE lettings; (3) Orion's new disposal material placement area, which provides an additional revenue stream and more dredging bidding opportunities; and (4) strong backlog that should result in profitable growth and improving margins for the next several years. If the pace of U.S. Army Corps of Engineers (USACE) lettings improves in late 2014 and 2015, we believe our estimates and price target could prove to be conservative."

For an analyst ratings summary and ratings history on Orion Marine Group click here. For more ratings news on Orion Marine Group click here.

Shares of Orion Marine Group closed at $11.63 yesterday.

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