Benchmark Downgrades American Science & Engineering Inc. (ASEI) to Hold on Government Delays and Valuaiton

February 5, 2013 6:57 AM EST
Get Alerts ASEI Hot Sheet
Price: $37.05 --0%

Rating Summary:
    1 Buy, 1 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 32 | New: 34
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Benchmark downgraded American Science & Engineering Inc. (NASDAQ: ASEI) from Buy to Hold with a price target of $65.00.

The firm comments, "Downgrade to HOLD on government and FMS Delays and valuation. We are downgrading AS&E to a HOLD with a new Price Target of $65. 1) We believe AS&E will struggle to grow in FY13 and possibly in FY14 due to soft bookings from government delays and economic uncertainty. 2) The large Foreign Military Sales (FMS) requirement from Iraq is likely delayed due to funding availability, according to our Washington sources. 3) The company remains in transition with the new CEO search. 4) At $69.41, the stock is trading at 10.4x our FY14 EV/EBITDA, above the sector average of 7x, while we think AS&E has limited visibility for growth and faces potential margin compression from product diversification and competition."

For an analyst ratings summary and ratings history on American Science & Engineering Inc. click here. For more ratings news on American Science & Engineering Inc. click here.

Shares of American Science & Engineering Inc. closed at $68.66 yesterday.

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