J.P. Morgan Cuts Price Target On Pike Electric (PIKE)
J.P.Morgan Chase & Co. is lowering its price target on shares of Pike Electric Corporation (NYSE: PIKE) after the company reported earnings yesterday. It continues to rate shares at Neutral, but lowered the price target to $9 from $10.
In the research report, J.P. Morgan writes, "PIKE remains focused on M&A to execute its diversification strategy, in order to offset weakness in core US distribution. For example, the recent Klondyke acquisition extended the company’s EPC capabilities to the West Coast. Furthermore, a strategic partnership recently won a sizable distribution contract in Tanzania (PIKE’s initial foray outside the US), and management is targeting additional work in foreign countries with demand for power infrastructure."
Shares of Pike lost 76 cents yesterday, a loss of 9% to close at $7.64.
