Shimmick downgraded to Neutral from Buy at Roth MKM

Roth MKM analyst Gerry Sweeney downgraded Shimmick to Neutral from Buy with a price target of $3.50, down from $9. Q1 results were significantly below projections and the loss incurred triggered a covenant breach on its revolver, leading to a delayed 10-Q filing. While water end markets remain robust, the firm believes it is prudent to move to the sidelines until there is better clarity on Shimmick’s execution and cost controls on AECOM projects, the analyst tells investors.