Zacks Investment Research downgraded shares of Astec Industries, Inc. (ASTE) from NEUTRAL to UNDERPERFORM on November 22, 2013, with a target price of $31.00.
We are downgrading Astec Industries from Neutral to Underperform, with a target price of $31.00. Astec's third-quarter earnings declined 3.4% year over year to 28 cents per share. Total revenue also decreased 2% year over year to $213.2 million with a drop in domestic and international sales. Continued weakness in the international markets, particularly in Canada will hurt Astec's top line while gross margins will continue to be affected by underabsorption. In addition, the uncertain future of highway funding has made customers cautious to spend on major equipments. Adverse weather conditions, increasing competition and ongoing economic uncertainties also remain headwinds in future.
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