UPDATE: Benchmark Downgrades Cubic Corporation to Hold on Limited Catalysts, Defense Uncertainty

Benchmark downgraded Cubic Corporation CUB from Buy to Hold and lowered the price target to $46.00. Benchmark noted, "Although we believe Cubic remains well-positioned to grow over the long-term, we view FY13 as a transitional year with lower growth in Transportation and deceleration in Defense. We maintain our FY13 sales estimates of $1.37 billion down 1%y/y (-5% organic growth). Our model assumes $37.5 million and 7.5 million respectively from the acquisitions of NEK and NexBus. We lower our FY13 EPS to $2.54 from $3.14, reflecting margin pressure in both Transportation and Defense, and slight dilution from the acquisitions." Cubic Corporation closed at $48.40 on Monday.