Needham & Company Downgrades MTS Systems (MTSC) to Hold

Needham & Company downgraded MTS Systems (NASDAQ: MTSC) from Buy to Hold.

Analyst James Ricchiuti commented, "Over the past week, there have been mixed data points relating to MTSC's Test business (83% of Q2 rev), chief among them the company's surprising 8-K filing late last week of a new head for this business unit, the second change in leadership within the Test business in eight months. MTSC's test bookings have increased in the high teens over the last two quarters, and we believe underlying demand has remained healthy, as evidenced by yesterday's report of 20% growth in Q3 at competitor Instron. However, we would not rule out another uneven quarter from MTSC, which we think could center on gross margins. While investors may be willing to look past another choppy quarter, we have opted to move to sidelines and lower our rating to Hold from Buy."

For an analyst ratings summary and ratings history on MTS Systems click here. For more ratings news on MTS Systems click here.

Shares of MTS Systems closed at $68.98 yesterday.

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