UPDATE: KeyBanc Downgrades Sterling Construction to Hold

KeyBanc lowers its rating on Sterling Construction

from Buy to Hold after the company pre-announced negatively on fourth quarter results. KeyBanc says, "STRL preannounced that 4Q11 results would be impacted by $0.23-$0.27 per share (aftertax) on account of a revision in project estimations on several projects – the Company will also be taking a charge related to goodwill impairment post its annual test/review of goodwill. We view the project issue-related charges as disappointing and note that these follow a 3Q that was impacted by a similar profile of charges. This translates into a loss quarter for 4Q11 of at least $0.02 (excluding any goodwill impairment charge) vs. our estimate of $0.24 and consensus of $0.22." STRL closed at $12.30 a share yesterday.