Benchmark Upgrades American Science & Engineering Inc. (ASEI) to Hold; Service Revenue Risk From Drawdowns; Premium Valuation from Potential Takeout
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Price: $37.05 --0%
Rating Summary:
1 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Benchmark upgraded American Science & Engineering Inc. (NASDAQ: ASEI) from Sell to Hold with a new price target of $66.00.
Analyst, Josephine Millward, said, "Although we are cautious ahead of the quarter, we believe AS&E’s prospects have significantly improved in FY13 with a major Iraqi requirement and active international pipeline. The company has a strong balance sheet with $216 million in cash ($24/share). However, our HOLD rating reflects risk related to the company’s Services & Support business, which accounts for 30-40% of revenue, in light of US troop drawdowns. We also believe AS&E’s premium valuation is driven by speculation of a takeout in defense industry consolidation, but we think a near-term deal is unlikely."
For an analyst ratings summary and ratings history on American Science & Engineering Inc. click here. For more ratings news on American Science & Engineering Inc. click here.
Shares of American Science & Engineering Inc. closed at $67.16 yesterday.
Analyst, Josephine Millward, said, "Although we are cautious ahead of the quarter, we believe AS&E’s prospects have significantly improved in FY13 with a major Iraqi requirement and active international pipeline. The company has a strong balance sheet with $216 million in cash ($24/share). However, our HOLD rating reflects risk related to the company’s Services & Support business, which accounts for 30-40% of revenue, in light of US troop drawdowns. We also believe AS&E’s premium valuation is driven by speculation of a takeout in defense industry consolidation, but we think a near-term deal is unlikely."
For an analyst ratings summary and ratings history on American Science & Engineering Inc. click here. For more ratings news on American Science & Engineering Inc. click here.
Shares of American Science & Engineering Inc. closed at $67.16 yesterday.
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