UPDATE: Global Hunter Securities Initiates Twin Disc with Neutral

Global Hunter Securities initiates its coverage on Twin Disc

with a Neutral rating on lack of clarity to intermediate demand trends. Global Hunter Securities says, "We are initiating coverage of Twin Disc (

) with a Neutral rating due to a lack of clarity in intermediate demand trends and concern following negative commentary regarding the potential impact of lower capex from several public company customers in the energy space. Six-month backlog numbers reported in Q2 FY2012 showed the first sequential decline following 10 quarters of consistent growth; while the decline is relative to record levels reported in Q1, it has created some uncertainty, and we have chosen to take a conservative stance to wait for additional clarity in Q3. While valuation relative to historic multiples remains at the lower end of the historic range, we are concerned that there is a risk of downward revisions to consensus estimates." TWIN closed at 26.21 a share yesterday.