Downer EDI might have to experience more pain after taking a $190 million strike because of cost floods in the $1.9 billion NSW Waratah train project, market analysts have cautioned.

Provided that the project has lost $150m and is merely 30% complete, one must assume that it is quite a difficult project, Owen Evans of UBS said. These usually get worse prior to getting better in shape. It is considered that it is cautious to guess an additional cash loss of approximately $150m could be seen.

Citigroup Political Analyst, Guy Robinson has raised Downer's risk report to high, so as to mirror investors' tremendous distress with the $190m provision after frequent management guarantees provide to them.

Macquarie has lessened its rating on Downer to neutral.

Shares increased by 10c to $4.68 yesterday after plunging downwards by 27 per cent on Tuesday.