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.