UPDATE: Wedbush Upgrades Lindsay Corp. to Neutral (LNN)
Wedbush is out with its report today on Lindsay Corp. (NYSE: LNN), upgrading LNN from Underperform to Neutral.
In a note to clients, Wedbush writes, "Given the -18.5% pullback in LNN shares from our underperform rating on February 22, 2011 vs. the 1.7% decline in the Russell 2000, along with what we believe are strong long-term fundamentals, we are raising our rating to NEUTRAL from UNDERPERFORM. Our recent dealer survey indicates some moderation of sales trends in April from January and February, partly due to challenging weather conditions in some regions of the U.S. These conditions have delayed crop plantings and could potentially affect demand for irrigation equipment in the back half of the year. However, commodity prices continue to be relatively firm versus historical levels, albeit down from their highs, setting the stage for an encouraging outlook in 2012. In our view, there continues to be risks in owning these shares given their susceptibility to swings in crop prices and valuation, but they no longer appear substantially overvalued particularly in light of our expectations for 2012."
Wedbush maintains a $65 PT on LNN.
Shares of LNN closed Tuesday at $62.54, up 0.39% from Monday's close.
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