Astec Industries Given ‘Neutral’ Rating (ASTE)
Astec Industries (NASDAQ: ASTE) is likely to see some near-term benefits from the increase in paving activities in the United States. However, Piper Jaffray has maintained its ‘Neutral’ rating for the stock. The combination of the normal seasonal increase in road construction activity is likely to have a positive impact on the company, but the report has raised concerns about the flow of the projects after the benefits of the economic stimulus package subside.
The company has also not satisfactorily addressed its funding issues. Piper Jaffray has maintained its estimates for Astec (ASTE) and has given it a ‘Neutral’ rating. The stock has been given a price target of $32, based on 20x FY11E EPS of $1.60. During today's trading session, ASTE shares fell 0.03% to $30.56.
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