D.A. Davidson: Powell Industries Gets More Attractive

Powell Industries, Inc. (NASDAQ: POWL) share-price drop of more than 34 percent in the past six months has resulted in a more fairly priced stock, an analyst said Friday.

D.A. Davidson's Brent Thielman upgraded the electrical company's shares to Neutral, from Underperform, and said recent pressure on the stock "appears to more appropriately factor" risks to earnings.

The company's shares changed hands recently up nearly 2 percent at $41.76,

"There is obvious concern about the recent decline in oil prices," Chief Executive Michael A. Lucas told analysts recently, noting that customer's capital spending may be reduced or delayed.

The segment has proven a strength for the company in recent quarters and although Lucas expects continued opportunities through mid-year, "we've passed the high point" in the current cycle.

The company made a big bet on the Canadian oil and gas bonanza with the completion of a new Canadian facility little more than a year ago.

Orders in fiscal 2014 were mainly driven by demand related to Canadian oil sands related projects.