Gardner Denver Shares Dip After Stock Downgrade

WASHINGTON (AP) — Shares of Gardner Denver Inc. slid Friday after a Wall Street analyst downgraded the maker of pumps and compressors' stock rating citing weak domestic gas production and lower European demand.

The Quincy, Ill.-based company's stock fell 76 cents, or 2.6 percent, to $28.15 in afternoon trading, after hitting a nine-month high of $30.07 earlier this week. The company's stock has traded between $17.22 and $57.87 over the last 52 weeks, and is up nearly 24 percent since January.

Key Banc Capital Markets analyst Jeffrey Hammond lowered Gardner's stock rating from "Buy" to "Hold," saying a "patient approach" is recommended in the current environment.

Hammond expects the company to be a long-term opportunity for investors, but warned clients to wait for a more favorable time to buy Gardner given tough near-term business trends.

He cited a weak outlook in domestic natural gas production, which could hurt its petroleum and industrial pump division, and further deterioration in European industrial demand as examples of near-term risks for the company. Gardner's Petroleum and Industrial Pump unit designs and makes various pumps, water jetting system and other parts used in oil and natural gas well drilling.

As a result, Hammond reduced his 2009 and 2010 earnings predictions to $2.30 from $2.35 and to $2.05 from $2.30, respectively.

Analysts polled by Thomson Reuters are looking for a per-share profit of $2.34 in 2009, and earnings of $2.59 per share in 2010.