FBR Capital Reiterates a 'Market Perform' on NCI, Inc. (NCIT); Decent 1Q11 Results
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Price: $20.00 --0%
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates a 'Market Perform' on NCI, Inc. (NASDAQ: NCIT), PT $27.
FBR analyst says, "Government services stocks such as NCI perform well when the threat environment is high, defense budgets are rising, and new programs are being established. Unfortunately - from a stock perspective - although the global threat environment continues to devolve, defense budgets are coming under intense pressure, which is likely to accelerate, and relatively few new programs are being established. As a result, it is our expectation that government services stocks will face a challenging environment for order growth and volume increases, barring some external shock to the system. Valuations remain attractive, and these companies are managing their cash flows well, which should create a floor under these names. But there is no obvious near-term catalyst to improve valuations going forward, and we do not get the sense that the group is yet cheap enough to attract deep-value investors."
"For 2011, we are updating our revenue estimate to $660M, which reflects revenue growth of 13.7%, as we think the company has a decent pipeline of opportunities for 2011 and should be able to convert them to revenues. From an EPS perspective, we are lowering our estimate to $1.70. For 2012, we estimate that revenues will continue to grow but at a slightly lower rate of 6% to $700M with EPS of $1.94, which reflects improving margins as the company improves its contract performance."
For more ratings news on NCI, Inc. click here and for the rating history of NCI, Inc. click here.
Shares of NCI, Inc. closed at $22.23 yesterday.
FBR analyst says, "Government services stocks such as NCI perform well when the threat environment is high, defense budgets are rising, and new programs are being established. Unfortunately - from a stock perspective - although the global threat environment continues to devolve, defense budgets are coming under intense pressure, which is likely to accelerate, and relatively few new programs are being established. As a result, it is our expectation that government services stocks will face a challenging environment for order growth and volume increases, barring some external shock to the system. Valuations remain attractive, and these companies are managing their cash flows well, which should create a floor under these names. But there is no obvious near-term catalyst to improve valuations going forward, and we do not get the sense that the group is yet cheap enough to attract deep-value investors."
"For 2011, we are updating our revenue estimate to $660M, which reflects revenue growth of 13.7%, as we think the company has a decent pipeline of opportunities for 2011 and should be able to convert them to revenues. From an EPS perspective, we are lowering our estimate to $1.70. For 2012, we estimate that revenues will continue to grow but at a slightly lower rate of 6% to $700M with EPS of $1.94, which reflects improving margins as the company improves its contract performance."
For more ratings news on NCI, Inc. click here and for the rating history of NCI, Inc. click here.
Shares of NCI, Inc. closed at $22.23 yesterday.
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