UPDATE: D.A. Davidson Reiterates Neutral Rating, Lowers PT on Willbros Group on Lower Multiples, Project Execution Concerns

In a report published Monday, D.A. Davidson analyst John B. Rogers reiterated a Neutral rating on Willbros Group WG, but lowered the price target from $9.00 to $7.00. In the report, D.A. Davidson noted, “We are reducing our price target on Willbros from $9 to $7 to reflect lower multiples for pipeline contractors and concerns regarding project execution. Our price target is based on 5x and 12x our 2014 EV/EBITDA and earnings estimates, respectively; slightly below other oil & gas contractors. Pressure on shares could continue. Shares of Willbros have been under pressure since the company reported weak Q1 results (see our recent report). We expect investor concerns to continue to limit the upside for the stock until financial results improve and/or the company's efforts to reduce debt are completed. We remain NEUTRAL rated.” Willbros Group closed on Friday at $6.94.