Piper Jaffray Raises PT on Lindaay Corp. (LNN) to $63 Following Mixed Q4
Piper Jaffray Raised Price Target on Lindsay Corporation (NYSE: LNN) to $63.00 (from $59.00), but maintains an Underweight rating for the company. The raise in estimates comes following the mixed results in the November ending quarter where weak irrigation demand continues to weigh on top-line and margins. LNN reported mixed 4Q results, with an EPS of $0.62, which came in above Street estimates of $0.55. However revenue of $121.6M was below Street estimates of $127.9.
Analyst Brett Wong commented, "We are raising our estimates following mixed results in the November ending quarter where weak irrigation demand continues to weigh on top-line and margins. Management believes we are at or near the bottom of the ag cycle but is cautious that equipment demand will pick up in FY16; however management is more bullish on the infrastructure segment now with the long-term highway bill in place. Although the bill is a clear positive we believe it will take some time for sales to flow through from roadsafety purchases, likely not until 2H16. In irrigation, we are concerned there will be additional discounting in the market as we head into the main selling season, where competitors have already begun discounting in addition to pushing lower costs through to customers. We believe the valuation multiple will face pressure in the near-term and we remain Underweight on shares of LNN."
For an analyst ratings summary and ratings history on Lindsay Corporation click here. For more ratings news on Lindsay Corporation click here.
Shares of Lindsay Corporation closed at $74.94 yesterday.