UPDATE: D.A. Davidson Lowers PT on Apogee Enterprises on Near-Term Challenges

In a report published Tuesday, D.A. Davidson analyst Brent Thielman reiterated a Neutral rating on Apogee Enterprises (NASDAQ: APOG), but lowered the price target from $28.00 to $26.00.

In the report, D.A. Davidson noted, “Apogee's shares have been under pressure since mid-May, although shares across our universe have also recently seen multiples contract. Apogee's long-term (fiscal 2016) targets suggest intriguing earnings potential (+$2.00 per share). However, near-term quarterly results will be lumpy due to timing of execution on older (lower profit margin) projects while LSO margins face difficult comparisons. Additionally, while we believe prospects for a recovery in commercial construction are generally improving, current levels of activity remain modest with mixed trends in private and public sector investment. Considering these factors and earnings guidance which is more heavily 2H weighted, we are less compelled to recommend the stock ahead of Q1 earnings and reducing our price target to reflect near-term return potential which coincides with our NEUTRAL rating. Our price target is now $26 (previously $28), or 15x and 6x our fiscal 2015 earnings and EBITDA estimates, respectively.”

Apogee Enterprises closed on Monday at $22.96.