Wells Fargo Downgrades ManTech (MANT) to Underperform; Sector Headwinds Tighten; Concern Over Activity Levels
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Price: $95.98 --0%
Rating Summary:
4 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo downgraded ManTech (NASDAQ: MANT) from Market Perform to Underperform, price target range $28-31 from $33-36.
Wells analyst said, "We are lowering our 2012 EPS estimate to $3.20 from $3.53, and our 2013 EPS estimate to $3.00 from $3.67. We are now expecting little growth this year or next and some margin compression. We base this on: 1) Anecdotal evidence of intensifying price pressure, especially for re-competes, IT-related work, and now for one of the few growth areas - cyber-security - because of too many providers pursuing work in this area. We note the large MRAP support contract is facing lower margins as pricing shifts to cost-plus from time & materials. 2) Our expectation that the Presidential election cycle will delay both the approval of GFY13 funding bills and the addressing of the onerous consequences of the Budget Control Act of 2011 (i.e. "sequestration")."
For an analyst ratings summary and ratings history on ManTech click here. For more ratings news on ManTech click here.
Shares of ManTech closed at $34.41 yesterday.
Wells analyst said, "We are lowering our 2012 EPS estimate to $3.20 from $3.53, and our 2013 EPS estimate to $3.00 from $3.67. We are now expecting little growth this year or next and some margin compression. We base this on: 1) Anecdotal evidence of intensifying price pressure, especially for re-competes, IT-related work, and now for one of the few growth areas - cyber-security - because of too many providers pursuing work in this area. We note the large MRAP support contract is facing lower margins as pricing shifts to cost-plus from time & materials. 2) Our expectation that the Presidential election cycle will delay both the approval of GFY13 funding bills and the addressing of the onerous consequences of the Budget Control Act of 2011 (i.e. "sequestration")."
For an analyst ratings summary and ratings history on ManTech click here. For more ratings news on ManTech click here.
Shares of ManTech closed at $34.41 yesterday.
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