UPDATE: UBS Securities Reiterates On Layne Christensen As Some Issues Persist

In a report published Thursday, UBS Securities analyst Steven Fisher reiterated a Neutral rating on Layne Christensen Company (NASDAQ: LAYN), but lowered the price target from $12.00 to $8.75.

In the report, UBS Securities noted, “LAYN is beginning to make material changes to both its business and management. A new CEO is expected to start in early January, after LAYN's chairman has served as interim CEO since June. On the call management indicated that a more significant divestiture than those previously announced could come in the next month or two. LAYN has been pushing for unit and asset sales over the past several quarters. There is still a lack of clarity in Mining, and water resources may be over earning as it experiences a temporary benefit from severe California drought. However, the Inliner business continues to perform well. Some cost savings could be achieved in the next 12 months, and we were pleased to hear that a potential problem project in San Francisco has been completed.”

Layne Christensen closed on Wednesday at $7.98.