UPDATE: Wedbush Upgrades Energy Recovery to Neutral

Wedbush Securities has published a research report on Energy Recovery

and has upgraded the company from Underperform to Neutral. In the report, Wedbush writes, "n our view, the value of the company is predicated on a turnaround that will likely be protracted. The maximum value for this company appears possible only from a strategic acquirer. Applying a healthy 9.5x multiple to a pro forma EBITDA would suggest a TEV value of $89.3 million plus $45.4 million in cash, for an equity value of $134.7 million, or $2.56/share. Otherwise, using a multiple of 9.5x on 2013E EBITDA would imply a value of just $1.49 per share." Wedbush has lowered the price target from $2.50 to $2 on Energy Recovery, which is currently trading down $0.01 from yesterday's $2.42 closing price.