Cubic Shares Fall As Analyst Notes Limited Upside
WASHINGTON (AP) ¿ Shares of Cubic Corp., which makes military training simulators and fare-collection systems for mass transit, sank Thursday as a Wall Street analyst forecast stronger demand for military training, but noted stock growth will be limited due to its recent run-up.
Cubic, based in San Diego, lost $2.29, or 6 percent, to $35.55 in afternoon trading. The company's stock has traded between $17.03 and $40.66 over the last 52-week period. The stock has gained 39 percent since January.
Boenning & Scattergood analyst, Michael Ciarmoli, began coverage of Cubic with a "Neutral" rating, saying despite strong global demand for military services, the recent stock run up leaves little room for upside.
"Ever present global demand for military training systems and services should position Cubic for growth even as the U.S. defense budget flattens," said Ciarmoli, in a note to clients. "Spending on military training stays hot as the defense budget cools."As the Pentagon puts more emphasis on irregular warfare in Afghanistan and Iraq, military training will be necessary across the services to learn new techniques to manage counterinsurgency and defeating explosive devices, he said.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV