Wells Fargo Upgrades DynCorp Int'l (DCP) to Outperform; Opportunity After Recent Pullback in Stock Price

November 18, 2009 7:23 AM EST

Wells Fargo upgrades DynCorp International (NYSE: DCP) from Market Perform to Outperform

Wells analyst says, "DynCorp International is a unique provider of mission-critical, non-combat technical services primarily for the U.S. Departments of State and Defense, and increasingly involved in supporting construction and peacekeeping efforts globally. Sizeable backlog, long-term relationships, and solid cash flow yield an attractive business model, although the timing of quarterly results should prove uneven. Uncertainty over recent (11/17/09) indictment against (small) subcontractor Public Warehousing Co. (PWC) has created some investor concern, although we believe any impact for DCP to be token, if any...We remain comfortable with our FY10-11E EPS and EBITDA estimates, and Valuation Range of $18-20 (5.5-5.9x EV/EBITDA)."

DynCorp International Inc. provides specialized critical services to civilian and military government agencies worldwide, and operates programs in law enforcement training and support, security services, base operations, aviation services, contingency operations, and logistics support.

To see all the upgrades/downgrades on shares of DCP, visit our Analyst Ratings page.

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