UPDATE: D.A. Davidson Downgrades Sterling Construction Company Following 3Q EPS Loss

In a report published Tuesday, D.A. Davidson analyst John B. Rogers downgraded the rating on Sterling Construction Company, Inc. (NASDAQ: STRL) from Buy to Neutral, and lowered the price target from $10.00 to $9.00.

In the report, D.A. Davidson noted, “Sterling Construction reported a loss of $0.03 per share for the third quarter, up from a loss of $0.06 last year. As indicated, these results were substantially below our estimate due to additional charges on three problem projects, which impacted gross margins...Management reported the company incurred $3.5 million (approximately $0.19 per share) of additional charges on three projects that are in the final stages of completion. The charges relate to issues with subcontractors and other factors in Texas and California. Management is seeking recoveries for the added costs, but prospects are uncertain.”

Sterling Construction Company closed on Monday at $8.54.