UPDATE: Stifel Downgrades Aegion Corp Waiting For Improved Execution

In a report published Wednesday, Stifel analyst Noelle Dilts downgraded the rating on

from Buy to Hold, and removed the $27.00 price target. In the report, Stifel noted, “Yesterday, Aegion Corporation shares traded down a material 12.1% in response to the company's announced guidance reduction and restructuring plan. We are lowering our 2014 and 2015 EPS estimates by 15% and 22% respectively, and believe there is inadequate upside in the name on these lower estimates to justify the Buy rating. Furthermore, we have been disappointed by the string of earnings misses at AEGN, which we believe have stemmed from overly aggressive internal management targets and underperformance at acquired operations. While we continue to believe that newly appointed CEO Chuck Gordon will bring positive changes to the company, we are taking more of a wait-and-see approach with regard to these improvements. We continue to like the majority of AEGN's end-market exposure (particularly North American onshore pipeline) and potentially would get more constructive on the name following several quarters of solid execution, all else being equal.” Aegion Corp closed on Tuesday at $19.38.