Zacks Investment Research downgraded shares of Alliant Techsystems Inc. (ATK) from OUTPERFORM to NEUTRAL on January 07, 2013, with a target price of $69.00.
We downgrade our recommendation on Alliant Techsystems Inc. to Neutral from Outperform owing the government's austerity drive that will ultimately lead to a spending crunch in the defense sector. The cut in overseas U.S. defense budget is also expected to create headwinds for the company. We believe geo-political risks in international contracts might also hinder growth opportunities. Moreover, program execution risks and increased technological competitiveness are other possible near term downsides that could create obstacles in the company's development path. However, these potential negatives could be mitigated by several U.S. defense and aerospace contracts received by the company at regular intervals.
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