home
Water Industry News

Insituform Drops on 2 Downgrades

NEW YORK (AP) - Shares of Insituform Technologies Inc., a contractor which repairs sewers and underground pipes, fell after a pair of analysts downgraded the stock.

Stifel Nicolaus & Co.'s Jeffrey Beach lowered his rating to "Hold" from "Buy," saying the stock is near his price target of $30 per share. He now expects the company's tunneling division to lose money and predicted weaker results in sewer rehabilitation.

"We view Insituform stock as fairly valued on our revised forecast and, as a result, we are reducing our investment rating to Hold," he said. Beach reduced his 2007 earnings per share outlook to $1.20 from $1.45.

Janney Montgomery Scott analyst Debra Coy downgraded shares of the Chesterfield, Mo.-based company to "Neutral" from "Buy," and reduced her 2007 forecast to $1.28 per share from $1.31. She kept her $28 price target.

"Overall, we continue to believe that Insituform is extremely well positioned in a market with attractive long-term growth prospects, but we see little catalyst to take the stock higher in the near-term," Coy said.

Insituform shares lost $2.50, or 9 percent, at $25.37 in afternoon trading on the Nasdaq Stock Market. The stock has given up 15 percent since reaching a five-year high of $29.81 on Wednesday.

2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.