UPDATE: Sterne Agee Initiates Buy, $40 Target on Astec Industries

Sterne Agee initiates a Buy rating and $40 target price on Astec Industries Inc. ASTE as the company sees 25% EPS growth even without a highway bill. Sterne Agee says, “Over the past couple of years, as the Great Recession and bickering in Washington have led to continued uncertainty surrounding federal highway funding, Astec has taken steps to diversify into new markets and increase its focus on international opportunities. We believe the moves Astec is making are well advised, as potential growth in the traditional road-building arena is limited due to current public-sector budget issues.” ASTE closed at $32.85 per share on Monday.