Roth Capital initiates coverage on Sensytech (STST) with strong buy.
Analyst Steven Gish says Sensytech makes electronics and technology products for defense and intelligence markets. He says untapped potential in the homeland-security market may stretch across all three of Sensytech's operating segments -- Defense System, Communication, and Imaging -- especially U.S. signal intelligence.
With about $14.4 million in cash on hand as of March, zero debt, and experienced leadership, Gish thinks Sensytech can prudently grow earnings faster than industry averages. He sees 16 cents third-quarter earnings per share, and 62 cents fiscal 2003 (Sep.), as well as 79 cents for fiscal 2004. He set a $18.50 12-month target.