UPDATE: Benchmark Downgrades American Science & Engineering to Hold on Valuation, Government Delays

Benchmark downgraded American Science & Engineering

from Buy to Hold and announced a $65.00 price target. Benchmark noted, "We are downgrading AS&E to a HOLD with a new Price Target of $65. 1) We believe AS&E will struggle to grow in FY13 and possibly in FY14 due to soft bookings from government delays and economic uncertainty. 2) The large Foreign Military Sales (FMS) requirement from Iraq is likely delayed due to funding availability, according to our Washington sources. 3) The company remains in transition with the new CEO search. 4) At $69.41, the stock is trading at 10.4x our FY14 EV/EBITDA, above the sector average of 7x, while we think AS&E has limited visibility for growth and faces potential margin compression from product diversification and competition." American Science & Engineering closed at $69.41 on Monday.