UPDATE: Stifel Nicolaus Initiates L.B. Foster Company at Hold on Valuation
Stifel Nicolaus initiated coverage on L.B. Foster Company (NASDAQ: FSTR) with a Hold rating.
Stifel Nicolaus noted, "Shares have recovered close to their two-year high after the concrete tie warranty issues took more than 50% out of the company's market cap in 2011, when shares traded down to below $17. The current share price, in our view, reflects a market expectation that the concrete tie warranty issues are fully behind the company. With an increase to the company's reserve for this issue coming as recently as the last time it issued a quarterly earnings release in November 2012, we are, perhaps, not as convinced as the market appears to be."
L.B. Foster Company closed at $44.13 on Thursday.
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Tags: Stifel Nicolaus