ManTech: Alliance Global downgrades on concerns over defense spending

Global Partners LP

09/02/2021 15:33

** Alliance Global Partners downgrades ManTech International
Corp  MANT.O  to "neutral" from "buy" on peak valuation and
expected slowdown in defense spending
    ** Analyst Brian Kinstlinger believes appreciation to the
defense contractor's stock will be limited given co is trading
at close to peak valuation on 2022 adj. EBITDA estimates,
coupled with uncertainty surrounding defense spending
    ** Kinstlinger believes growth in defense spending under the
Biden administration will slow or even modestly decline and this
will result in slower revenue and profit growth for the co over
the next few years
    ** Brokerage, however, says co has been posting best in
class organic growth rates over the last several years and
expects solid mid-to-high single digit revenue growth in 2021
    ** Avg rating among 8 analysts covering MANT is "buy";
Median PT is $85 - Refinitiv Eikon data
    ** MANT is down 1.6% at $88.35 in early trading on Tues

 (Reporting by Aniruddha Chakrabarty)
 ((aniruddha.c.thomsonreuters.com@reuters.net))