UPDATE: Wedbush Raises PT on Aegion, 'Acquisition Appears Accretive on Surface though We Continue to See Guidance Challenged'

In a report published on Wednesday, Wedbush analyst David L. Rose raised the price target on Aegion AEGN from $16 to $19 and maintained an Underperform rating.

In the report, Wedbush stated, "Aegion's planned acquisition is a continuation of its strategy to diversify its exposure to the North American sewer rehabilitation market while driving growth in the energy and mining segment. Though the acquisition should be accretive starting in 2013, the weakness in its core business and ongoing earnings disappointments still provide us with a fair amount of concern and we would suggest investors remain on the sidelines until there is evidence the company can deliver on forecast."

Aegion closed on Tuesday at $22.64.