UBS Maintains a 'Buy' on Alliant Techsystems (ATK); Valuation Gap Partially Closes
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Price: $140.03 --0%
Rating Summary:
4 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
4 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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UBS maintains a 'Buy' on Alliant Techsystems (NsYSE: ATK) price target slashed from $100 to $80.
UBS analyst says, "With yesterday’s move, ATK partially closed the valuation gap with its large cap peers that we have long thought was too wide. While we have lowered our FY13-16 EPS estimates and Radford/Lake City outcomes could overhang the stock, we still favor ATK among our defense names given solid growth potential in its commercial businesses (aero and ammo accessories), its capital deployment opportunity and upside on portfolio restructuring."
"We are reducing our FY 13-16 EPS estimates by 15% to reflect lower revenues and margins across our forecast period. Our FY13 EPS estimate assumes a Radford loss along with higher pension expense ($0.30). In the scenario where ATK were to lose Radford/Lake City and NASA were to go to zero, we still see EPS holding at $6.00 or higher, minimizing potential downside from current levels."
For more ratings news on Alliant Techsystems click here and for the rating history of Alliant Techsystems click here.
Shares of Alliant Techsystems closed at $62.60 yesterday.
UBS analyst says, "With yesterday’s move, ATK partially closed the valuation gap with its large cap peers that we have long thought was too wide. While we have lowered our FY13-16 EPS estimates and Radford/Lake City outcomes could overhang the stock, we still favor ATK among our defense names given solid growth potential in its commercial businesses (aero and ammo accessories), its capital deployment opportunity and upside on portfolio restructuring."
"We are reducing our FY 13-16 EPS estimates by 15% to reflect lower revenues and margins across our forecast period. Our FY13 EPS estimate assumes a Radford loss along with higher pension expense ($0.30). In the scenario where ATK were to lose Radford/Lake City and NASA were to go to zero, we still see EPS holding at $6.00 or higher, minimizing potential downside from current levels."
For more ratings news on Alliant Techsystems click here and for the rating history of Alliant Techsystems click here.
Shares of Alliant Techsystems closed at $62.60 yesterday.
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