Morgan Keegan Lowers Price Target On Beacon Roofing (BECN)

Morgan Keegan is lowering its earnings estimates and price target on shares of Beacon Roofing Supply, Inc. BECN after the company reported weaker than expected results. Morgan Keegan is lowering its price target to $23 from $28.40, but is keeping its Outperform rating. In the report Morgan Keegan notes, "Beacon reported Q3:10 EPS of $0.35; consensus was $0.46 and our estimate was $0.49. Gross margins presented a significant disappointment, while residential segment revenues reported the largest miss versus our forecast since coming public." "We continue to rate the shares of Beacon as an Outperform. While gross margins disappointed, we are comforted by the healthier trends exiting the quarter and by the fact that weakness was largely isolated to non-residential and complementary products categories. We believe our long-term thesis for the roofing industry remains intact." Shares of Beacon Roofing Supply are down 45 cents to $14.43.