Wells Fargo Downgrades NCI, Inc. (NCIT) to Underperform; Perfect Storm Of Issues Impact New Business And Earnings Outlook
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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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Wells Fargo downgraded NCI, Inc. (NASDAQ: NCIT) from Market Perform to Underperform, price target range lowered to $11-$12 from $21-23.
Wells analyst says, "NCI, Inc. is a smaller-sized provider of primarily IT, but increasingly professional, services to the U.S. federal government. Continued slow pace of market awards, significant revenue from lower-margin pass-through work, increased new business costs and ongoing pricing pressure has dampened the EPS growth outlook. Meaningful reduction in CY11 guidance after Q2 raises questions about just how weak the government services market is and the success of the prior low-margin BRAC strategy that now appears not to be yielding "client entry" follow-on work. We note there is an unused $25 million share repurchase program in place. We expect that the large founder/CEO holdings will limit private equity and strategic interest removing a potential floor for the shares."
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 $21.14 yesterday.
Wells analyst says, "NCI, Inc. is a smaller-sized provider of primarily IT, but increasingly professional, services to the U.S. federal government. Continued slow pace of market awards, significant revenue from lower-margin pass-through work, increased new business costs and ongoing pricing pressure has dampened the EPS growth outlook. Meaningful reduction in CY11 guidance after Q2 raises questions about just how weak the government services market is and the success of the prior low-margin BRAC strategy that now appears not to be yielding "client entry" follow-on work. We note there is an unused $25 million share repurchase program in place. We expect that the large founder/CEO holdings will limit private equity and strategic interest removing a potential floor for the shares."
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 $21.14 yesterday.
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