UPDATE: Citigroup Downgrades Actuant Corporation to Neutral on Risk/Reward Outlook
Citigroup reduces its rating on Actuant Corporation (NYSE: ATU) from Buy to Neutral and lowers its price target from $33 to $29.
Citigroup comments, "We are downgrading shares of ATU from Buy to Neutral based on its 35% revenue exposure to Europe, as well as our shift in sector view from Attractive to Neutral. We believe the looming macro headwinds in Europe present the greatest risk to Actuant and the Multi-Industry sector in 2H12. Actuant has managed to sidestep the brunt of these headwinds so far, posting positive organic growth in the region in 3Q12 (May). However, underscoring our growing concern has been recent commentary from a handful of sector peers about Europe's deteriorating operating environment. While ATU's low relative valuation to small-cap peers arguably discounts these risks, we believe this is not the optimal time to recommend the shares."
ATU closed at $25.81 on Wednesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.