Astec price target lowered to $37 from $50 at Baird

Baird analyst Mircea Dobre lowered the firm’s price target on Astec to $37 from $50 and keeps a Neutral rating on the shares. Today’s 22% decline in the stock following Q3 earnings miss is clearly indicative of a sizable reset in expectations, and some value buyers will likely emerge, the analyst tells investors in a research note. The firm adds however that it is still struggling with determining if 2023 orders are truly indicative of end-user demand and whether 2021/2022 order pull forwards will lead to a medium-term lull for production and margins into the second half of 2024 and 2025.