Shares Of Insituform Technologies Jump On Upgrade
NEW YORK (AP) â¿¿ Shares of Insituform Technologies Inc. jumped Tuesday after a Stifel Nicolaus analyst upgraded the stock to "Buy" from "Hold" on the expectation that revenue from its sewer rehabilitation systems, energy projects and a joint venture will drive earnings higher this year and next.
THE SPARK: Analyst Jeffrey Beach also raised his earnings predictions for 2010 and 2011, saying he expects infrastructure growth in Asia to drive the company's revenue and profit. He also thinks increased energy spending will aid the company.
Insituform rehabilitates mining, sewer, water and energy piping systems.
THE BIG PICTURE: Infrastructure spending is a key indicator of economic health around the globe.THE ANALYSIS: Beach said the company's appointment of a new CEO in April has had a "significant, positive impact on Insituform in terms of profitability and long-term growth strategy." He noted the new executive has positioned the company to take advantage of new projects around the globe, especially energy and industrial plans in the Asia Pacific region. SHARE ACTION: Shares rose $2.19, or 10.2 percent, to $23.68 in afternoon trading as the broader market advanced. Shares have traded between $15.26 and $28.38 over the past year.
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