UPDATE: Stifel Nicolaus Reduces PT to $12 on PMFG on Uncertainties

Stifel Nicolaus reiterated its Buy rating on PMFG

while reducing its price target from $15 to $12. Stifel Nicolaus said, “While the quarter was in line and bookings were ok, management commentary was less than encouraging. A major project ($10-$12 million) in Venezuela has been delayed and progress is uncertain. Management also commented that many Process projects are being delayed in the award phase, or even after award in the release phase. Projects expected to be awarded and/or let in F1Q13 have been delayed until 2Q-3Q13. In Environmental, recent regulatory rulings have been unfavorable, and PMFG's customers are not spending because they don't know what rules they are going to be playing under yet. As a result, we are reducing FY13 and FY14 estimates significantly, along with our target price." PMFG closed at $5.76 on Thursday.