Price Target Slashed For TeleCommunication Systems (TSYS)
J. P. Morgan has slashed the price target for TeleCommunication Systems (NASDAQ: TSYS), but has retained its ‘overweight’ rating.
The report has raised concern over lack of contract activity for TeleCommunication’s (TSYS) GS systems business.
The report also states that the company may be forced to revise down its full year guidance due to the risk that the new government systems contracts will be more back-end loaded in the year.
The stock is currently trading at 4.7 times CY10E PF EBITDA and it already prices in a probable downward revision to guidance. Its price target has been slashed from $11.50 to $9.50.
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Tags: JP Morgan