UPDATE: Wunderlich Securities Reiterates Hold Rating, Lowers PT on Dawson Geophysical Company on Potential Combination with TGE

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler reiterated a Hold rating on

, but lowered the price target from $24.00 to $18.00. In the report, Wunderlich Securities noted, “The news yesterday from Dawson Geophysical (DWSN) that it is looking to combine with TGC Industries (TGE-NR) in an all-stock transaction felt like deja vu as the two looked into this process in 2011. It made sense back then and it makes sense now, too, given that Dawson has such a strong presence in the U.S. market and keeps trying to enter the Canadian market while TGC has a strong Canadian presence and could use more size in the U.S. This combination of the two companies allows for Dawson to become a bigger player in a fragmented, and struggling, seismic market and, given the cyclical nature of the business, the fact the two companies combine in seemingly a trough of the cycle should allow it to emerge with more scope and scale as the market improves.” Dawson Geophysical Company closed on Thursday at $17.74.