UPDATE: Wunderlich Securities Downgrades Dawson Geophysical On Continued Weather/Timing Issues

In a report published Thursday, Wunderlich Securities analyst Jason A. Wangler downgraded the rating on

from Buy to Hold, and lowered the price target from $40.00 to $28.00. In the report, Wunderlich Securities noted, “Dawson Geophysical (DWSN) reported a tough F2Q14 as EPS of $0.21 was well below our $0.44 estimate and the Street's $0.50 forecast. The culprit for the miss was predominately higher expenses due to weather and other delays that reduced margins significantly while also hindering revenues. These issues caused the real utilization rate of Dawson's 12 crews to be closer to seven; these issues have cropped up again during F3Q14 with an expected ramp beginning in mid-May to improve the activity to full utilization for the 12 crews. "Due to these issues and continued delays we have reduced our numbers going forward to account for the tough environment for Dawson and other seismic players and as such we are downgrading the stock to Hold and reducing our price target to $28.” Dawson Geophysical closed on Wednesday at $26.52.