Zacks Investment Research downgraded shares of Lindsay Corporation (LNN) from OUTPERFORM to NEUTRAL on March 22, 2013, with a target price of $96.00.
Lindsay reported first-quarter 2013 earnings per share of $1.15, increasing 92% from the last-year quarter, led by higher demand for domestic irrigation systems, expansion in irrigation margins, strong pricing environment and fixed cost leverage on higher sales. Recovery in the U.S. construction sector and the new Highway bill will benefit Lindsay's infrastructure business. The company's backlog increased 61% year over year led by the U.S. irrigation order strength. Demand for irrigation systems in the domestic markets will remain high in 2013, driven by high crop prices and drought conditions. However, this might not continue in the future. International sales were weak in the quarter and will remain so due to the ongoing instability in the international markets. We have downgraded our recommendation from Outperform to Neutral with a target price of $96.00.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Lindsay Corporation (LNN),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment