J.P. Morgan Lowers Alliant Techsystems PT To $76 (ATK)

J.P. Morgan lowered its Alliant Techsystems

price target to $76 from $79 in a research report published today. In the report, J.P. Morgan states, "EPS of $2.09 exceeded our estimate by $0.20, driven by better than forecast margins and help from the R&D tax credit (+$0.10). However, a charge on the A350 marred the quarter, and margin potential on this $1 billion program looks far lower going forward, while there appears to be risk of further deterioration as well. The commercial ammunition business also disappointed relative to expectations as we had feared, and guidance was lowered, although ATK's business has held up far better than the industry thus far. We believe the stock could bounce back a bit after a severe two day sell-off, but considering both the risks and the potential reward, it is not enough to change our Neutral rating." Shares of Alliant Techsystems were at $73.78 in after hours trading at the time of posting, up 5.81% from Thursday's market close.