UPDATE: D.A. Davidson Reiterates On Powell Industries On Near-Term Margin Complications

In a report published Thursday, D.A. Davidson analyst Brent Thielman reiterated a Buy rating on

, but lowered the price target from $80.00 to $70.00. In the report, D.A. Davidson noted, “Powell Industries reported Q3 EPS of $0.24 from continuing operations compared to $0.76 last year. This was well below our forecast of $0.89 and consensus of $0.77. Margins declined due to headwinds in its Canadian operation as the company ramps production at its new facility, deferring revenue into Q4 and 2015. Additionally, schedule changes on certain U.S. projects led to lower than expected sales.” Powell Industries closed on Wednesday at $52.70.