Astec Industries (NASDAQ:ASTE) Mobile, Mobile Asphalt Paving Segments Facing Slow Demand

With there being little chance of passing a new federal highway bill with the high deficits the U.S. government has, Canaccord says Astec Industries (NASDAQ:ASTE) will have little growth in their domestic asphalt/mobile asphalt paving segments, which accounts for close to 50 percent of revenue.

Canaccord says, "We maintain our HOLD rating but increase our price target to $32 based on the introduction of 2012 estimates. We continue to believe that Astec’s domestic asphalt/mobile asphalt paving segments (which we estimate will account for >50% of revenue) will face sluggish demand this year as we see little chance that a new federal highway bill will be passed.

"For 2012, we introduce revenue/EPS estimates of $850M/$1.75. Our new estimates do not assume growth in the firm’s mobile and mobile asphalt paving segments, as we anticipate that domestic customers will continue to take a wait-and-see approach as they await a new federal highway bill."

Canaccord Genuity reiterates a "Hold" rating on Astec Industries, which closed Thursday at $32.89, down $0.21, or 0.63 percent. Canaccord raised their price target on Astec from $30 to $32.
(NASDAQ: ASTE), PT increased from $30 to $32.