C.K. Cooper Initiates Coverage On Three Defense IT Contractors (SRX, CACI, NCIT)

C.K. Cooper & Company analyst Alex Hamilton initiated coverage today on SRA International (NYSE: SRX), Caci International (NASDAQ: CACI), and NCI Inc. (NASDAQ: NCIT)All three companies are IT contractors for the defense industry. According to Hamilton, "defense IT falls into to the sweet spot of government spending and the IT market remains highly fragmented."SRX, CACI, and NCIT all received a Hold rating.Hamilton had this to say about the individual companies:SRX"SRX has historically set the standard for government IT in terms of performance, corporate culture, positioning to current markets and in many other ways. However, SRX has been struggling with the poor funding environment along with other government IT service providers. Historically growth has been robust at SRX, but is stalling."CACI"CAI’s broad diversity, above industry cash flow generation, favorable investor perception and overall positioning to federal services market should allow it to weather the funding environment storm which is far from over."NCIT"The defense IT names have suffered multiplecompression over the last year as growth has slowed due mainly to funding being diverted to support soldiers on the ground in the Middle East. This sporadic funding environment has affected NCIT. We believe this negative sentiment has impacted valuations and will continue to do so for some time."