UPDATE: DA Davidson Lowers PT to $14 on Primoris Services Corporation; Earnings Decline

DA Davidson reduces its price target from $17.50 to $14 on Neutral-rated Primoris Services Corporation

as earnings decline in the latest quarter due to the timing of a major project. DA Davidson notes, "Reported EPS of $0.20 compared with $0.24 last year were moderately below our expectations, as indicated. Operating results for both periods included substantial benefits from a major pipeline construction project completed in 2011. Reduced estimates reflect project timing. As indicated, we are reducing our estimates to reflect the Q1 variance and the impact of project timing, including backlog levels. Based on underlying growth trends and the company's position in several end-markets, Primoris is poised to benefit from increased development and utilization of low-cost natural gas. We look for revenue and earnings growth to resume following current difficult comparisons." PRIM closed at $12.03 on Wednesday.