Zacks Investment Research upgraded shares of Astec Industries, Inc. (ASTE) from UNDERPERFORM to NEUTRAL on February 21, 2014, with a target price of $39.00.
We are upgrading Astec Industries from Underperform to Neutral with a target price of $39.00. Astec's third-quarter earnings declined 3.4% year over year to $0.28 per share. Total revenue decreased 2% year over year to $213.2 million with a drop in domestic and international sales. Projects such as the pellet plants and new products are expected to contribute the majority of growth in 2014. Astec's continuous endeavor for acquisitions endeavors to make acquisitions will assist in expanding its product offering and market coverage. Growth in the U.S. highway construction will benefit Astec. However, Astec's gross margins will continue to be affected by underabsorption and continued weakness in international markets will be a deterrent.
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