UPDATE: Sterne Agee Downgrades Astec Industries to Neutral Following Share Run
Sterne Agee downgraded Astec Industries (NASDAQ: ASTE) from Buy to Neutral.
Sterne Agee said, "We are downgrading the shares of Astec from Buy to Neutral. The stock has had a nice run, but we haven't seen sufficient improvement in the company's end markets to justify increasing our estimates or target. … ASTE's shares are up 26% since the company's 3Q report on October 26 (vs. a 6% gain in the S&P 500) and now trade at 15x our FY2014 EPS estimate. The company's long-term average forward P/E is 17x, and applying that multiple to our 2014 estimate would result in a $39 target, not enough upside from current levels to justify a Buy rating, in our view."
Astec Industries closed at $35.32 on Monday.
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