Standpoint Research Downgrades ManTech (MANT) to Hold
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Price: $95.98 --0%
Rating Summary:
4 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
4 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Standpoint Research downgraded ManTech (NASDAQ: MANT) from Buy to Hold.
The firm states, "Uncertainty regarding government spending is pushing us to the sidelines on this name. MANT has run up 25% since the August low and is now trading near its 52-week high. The shares are now fairly valued at 11X estimates for next year. We can no longer attach our highest recommendation to this name as the risk-reward here is no longer attractive. FLIR, down 10% today on lower government spending, is a good example of what can happen to a name like this. The U.S. Government is MANT’s largest customer. Revenue should start to decline next year as the US withdraws from Iraq and Afghanistan. MANT will then be forced to grow and replace revenues in a difficult budget environment. MANT is a well-run company that has benefitted from the wars -- EPS rose from $1.57 in 2005 to $3.54 trailing twelve months. Record EPS of ~ $4.00 is expected for next year. It is difficult to drop this name at 0.6X sales, but we must do so as it may be a value trap here. One thing on MANT’s side is the fact that most of the areas they are in are critical to U.S. defense and less likely to be cut."
For more ratings news on ManTech click here and for the rating history of ManTech click here.
Shares of ManTech closed at $44.95 yesterday.
The firm states, "Uncertainty regarding government spending is pushing us to the sidelines on this name. MANT has run up 25% since the August low and is now trading near its 52-week high. The shares are now fairly valued at 11X estimates for next year. We can no longer attach our highest recommendation to this name as the risk-reward here is no longer attractive. FLIR, down 10% today on lower government spending, is a good example of what can happen to a name like this. The U.S. Government is MANT’s largest customer. Revenue should start to decline next year as the US withdraws from Iraq and Afghanistan. MANT will then be forced to grow and replace revenues in a difficult budget environment. MANT is a well-run company that has benefitted from the wars -- EPS rose from $1.57 in 2005 to $3.54 trailing twelve months. Record EPS of ~ $4.00 is expected for next year. It is difficult to drop this name at 0.6X sales, but we must do so as it may be a value trap here. One thing on MANT’s side is the fact that most of the areas they are in are critical to U.S. defense and less likely to be cut."
For more ratings news on ManTech click here and for the rating history of ManTech click here.
Shares of ManTech closed at $44.95 yesterday.
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