Piper Jaffray lower ERII PT (ERII)

Piper Jaffray is out with its report on Energy Recovery, Inc. ERII, lowering its PT from $3.50 to $3.

In the report, Piper Jaffray writes "Following the release of another disappointing quarter, we are lowering our FY11 sales & EPS estimates sharply and introducing FY12 estimates that show only a measured recovery. After three years of rapid growth, the financial crisis has brought large-scale desalination project activity to a standstill."

Piper Jaffray later adds, "...We believe the company would be well served to cut costs more aggressively to preserve earnings and cash flows."

Piper Jaffray maintains its Neutral rating.

Shares of ERII opened Friday at $3.44