UPDATE: Wedbush Downgrades Energy Recovery to Underperform; Expectations Are Too Optimistic

Wedbush downgraded Energy Recovery ERII from Neutral to Underperform and maintained a $2.00 price target. Wedbush noted, "Finishing another quarter of losses, ERII shares appear to reflect unrealistic expectations of future earnings despite tempered guidance for 2013 and a lack of orders or earnings visibility into the company's new product for the energy market. … Having benefited from the shipment of devices for existing projects, ERII will likely see tempered growth in 2013 given the lack of mega projects. Consequently, we are expecting another year of losses, even with expectations of shipments of the company's new energy recovery devices for the oil and gas market, which is still in test phase." Energy Recovery closed at $4.25 on Friday.