Dougherty & Co downgraded Geospace Technologies (NASDAQ: GEOS) from Buy to Neutral and removed its price target (prior $45.00). Analyst Joe Maxa said it looks like a difficult year.

"GEOS's 4Q14 results of $26.3M/($0.14) missed our $30.0M/$0.08 estimates by $3.7M/ $0.22 due to weaker than expected product demand, lower than anticipated gross margin, and higher than anticipated operating expenses. Industry commentary suggests the seismic market will continue to be weak into or perhaps through 2016, with the exception of ocean bottom seismic. GEOS and others are commenting this segment remains active. GEOS is having some success renting its OBX systems and Seafloor Geophysical Solutions (SGS) still could place a meaningful order ($29 million potential), but it continues to try to secure financing," said Maxa.

"Given the weakness in the seismic market and GEOS's lack of visibility, we are cutting our FY15 estimates to $110.0M/($0.35) from $190.0M/$2.00 and are lowering our rating to Neutral from Buy. We believe GEOS's shares could remain under pressure with continued quarterly losses in the near term. However, we believe its tangible book value ($25.28 per share) provides a rough floor," added the analyst.

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Shares of Geospace Technologies closed at $32.49 yesterday.