S&P Downgrades Astec Industries (ASTE) From Buy to Hold.

S&P downgraded road construction equipment maker Astec Industries (NASDAQ: ASTE) from a buy to hold in the Mar.17, issue of the Outlook, on price appreciation.

S&P thinks that Congress is unlikely to pass a new federal highway spending program until after the mid-term elections. They note that the House recently passed legislation, which extends current spending levels for 10 months, and suggests the issue may be pushed into 2011.

S&P sees risk from state budgetary problems, which will keep highway construction spending subdued. “We now believe the shares are overvalued, following their 11.5% price appreciation since fourth-quarter results were released on February 23.”