UPDATE: Piper Jaffray Downgrades American Vanguard Following 2Q Preannouncement
In a report published Tuesday, Piper Jaffray analyst Michael E. Cox downgraded the rating on American Vanguard (NYSE: AVD) from Overweight to Neutral, and lowered the price target from $37.00 to $29.00.
In the report, Piper Jaffray noted, “Following AVD's 2Q preannouncement, we are lowering our investment rating on AVD shares from Overweight to Neutral. While this move is clearly reactionary, our concern resides less on the weather impact to 2Q and more around what lingering effect delayed or possibly forgone orders - particularly in AVD's cotton insecticide & defoliant products - will have on inventory levels and manufacturing utilization over the next year. We are lowering our 2Q EPS to $0.30, which is flat to last year, and maintaining our Street-low 3Q EPS estimate. With lowered near-term earnings visibility, we believe AVD shares will trade more in-line with ag chem peers - as such our price target is lowered from $37 to $29 (15x our downwardly revised FY14 EPS estimate of $1.95).”
American Vanguard closed on Monday at $27.54.
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