Zacks Investment Research downgraded shares of Raven Industries Inc. (RAVN) from NEUTRAL to UNDERPERFORM on March 08, 2013, with a target price of $27.00.
Raven's third-quarter 2013 sales increased 4% to $97 million while earnings declined 3% to $0.31 per share. Both fell short of the respective Zacks Consensus Estimates. The Aerostar segment will continue to be impacted by sluggish aerostat orders in the near term. Revenues at the Engineered Films segment will remain affected due to continued energy market weakness while margins in the Applied Technology segment will be under pressure due to the company s increased investments in new initiatives. Given the performance so far in the year and a mixed fourth-quarter outlook, the company's long-term earnings growth target of 10-15% seems a distant possibility in the current year. We downgrade our recommendation from Neutral to Underperform on Raven Industries with a target price of $27.
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