UPDATE: DA Davidson Lowers PT to $30 on The Shaw Group on Planned E&C Division Sale

DA Davidson reduces its price target on The Shaw Group

from $35 to $30 and reaffirms its rating at Neutral. DA Davidson notes, "We are adjusting our EPS projections to incorporate the sale of the company's E&C business as well as expected line items associated with the transaction. Our estimates assume restructuring and project charges in fiscal Q3 and net gains in Q4. Additionally, the company is expected to incur further restructuring charges in FY-13 ($0.07 per share). Our projections are in line with management's updated earnings guidance for FY-12 in a range of $2.20-$2.30 per share, ex-Westinghouse." SHAW closed at $26.42 on Tuesday.