UPDATE: Pritchard Capital Partners Cuts PT to $21 on Tesco Corporation; Dropping Sales

Pritchard Capital Partners reduces its price target from $22 to $21 on Buy-rated Tesco Corporation (NASDAQ: TESO) on expectations that sales will drop for Q2.

Pritchard Capital Partners comments, "We foresee TD sales dropping sequentially to $37mm from $50mm in Q1, with units dipping to 27 from 35 and sales out of the rental fleet retreating to two from four. Two reasons include the dip in oilfield capital spending (at least in some end markets) and the company's slower rollout of its latest model ESI topdrive due to issues with outsourced gearbox castings. For the just-reported quarter, management emphasized the relatively high margin generated on sales of largely-depreciated units from the rental fleet and we are including the potential effect from lower sales out of the rental fleet."

TESO closed at $14.85 on Friday.