Ahead Of The Bell: Ameron International Upgraded

NEW YORK (AP) — Ameron International Corp. stock rose Thursday after an analyst upgraded his rating on shares of the maker of water-transmission lines because their price has fallen to an appealing level.

Boenning & Scattergood analyst Ryan M. Connors upgraded the stock, which has fallen 51 percent in the past 52 weeks, to "Outperform" from "Market Perform."

"Ameron has an 'early cycle' portfolio that could rebound rapidly in a recovery, and current levels offer a compelling entry point for long-term oriented investors," he wrote in a client note.

Since closing Dec. 16 2008, at $66.25 , shares have fallen by one-third to Wednesday's closing price of $44.38.

Shares fell 6.3 percent on Wednesday after the Pasadena, Calif., company reported a steep decline in its fiscal first-quarter profit, to levels below analyst expectations, mostly on falling demand for a steel product.

"Although Ameron is battling stiff macro headwinds and earnings momentum will likely remain negative through 2009, the company's sound financial position will enable it to weather the downturn," Connors wrote.

Besides upgrading the stock, the analyst cut his earnings-per-share estimate for this year to $1.50 from $3, which remains the average expectation of many analysts, according to Thomson Reuters.

In premarket trading, the stock rose $2, or 4.5 percent, to $46.38.