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Morgan Joseph Downgrades FLIR Systems (FLIR) to Hold; Valuation Call

October 22, 2009 7:49 AM EDT
FLIR Hot Sheet
Rating Summary:
    4 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 1
Morgan Joseph downgrades FLIR Systems (Nasdaq: FLIR) from Buy to Hold.

Morgan analyst says, "As anticipated, the Government Systems segment drove sales. Sales in the Government Systems segment increased 7% to $163.0mm from $151.7mm as demand for stabilized gimbaled systems increased. As we expected, international sales were also strong for FLIR, making up $124.3mm or 44% of total revenue in 3Q09. International sales have recently outpaced those from the U.S. Government, a trend that is expected to continue. Sales to the U.S. Government also represented approximately 44% of revenue in the quarter."

"We are updating our estimates for 2009 to account for 3Q09 results, and adjusting our 2010 estimates for flat Government Systems sales next year and the improved economic conditions we expect to benefit Thermography. We estimate 2009 sales of $1.14bn, gross profit of $656.8mm, EBITDA of $389.9mm, operating income of $348.6mm, and net income of $234.6mm or $1.45 per diluted share. For 2010, we now expect sales of $1.20bn, gross profit of $688.8mm, EBITDA of $395.1mm, operating income of $354.3mm, and net income of $243.8mm or $1.51 per diluted share."

To see more analyst ratings on FLIR Click Here.

FLIR Systems, Inc. designs, manufactures, and markets thermal imaging and infrared camera systems in the United States and internationally.

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