War is good for Business - pullouts from Iraq apparently are not.
Anyone catch this news brief at the D&C yesterday. It was at other sources the D&C just ran it. Check it out.
The stock price of Harris Corp. is down 10 percent today after one Wall Street analyst downgraded the company on expectations the wind-down of the Iraq War could hurt sales at Harris RF Communications.
Rut Roh.
In his note to investors, CL King & Associates analyst Lawrence M. Harris wrote the Albany firm was lowering its rating on Harris RF parent Harris Corp. from “strong buy” to “accumulate” and lowering its 12-month target price from $55 to $36 because of concerns the Iraqi government might delay its purchase of Harris radios and as the U.S. military may ramp up its pull-out from Iraq.
Got that? The US might pull out of Iraq some day and there will no longer be a need for Harris Radios. So an analyst downgraded the Stock, the stock dropped almost 9% to $28.12.
Well, what has the news been like recently for Harris - employer of 2200 people in Rochester? There was this $30 million dollar contract with the Navy. This $600 million dollar stock buyback program, this $18 million dollar contract, and this analyst picked Harris to outperform the market. Oh and did we forget the local police Harris connection were our local law enforcement is using Harris Radios (meaning ultimately, other local law enforcement can use Harris Radios)
Look - I just think this is a line of crap by some analyst. I mean are we supposed to hope for blown up radios? Of course not.
I wonder how Harris stock (HRS) will do today. The market opens in a few minutes.
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If I had money to buy stock I would go with Harris…they have a proven track record. Analysts can change their minds based on who said what to whom and who offers the best booze or perks. They are kind of like movie critics….I seldom agree with them either.
[...] peace bad for business? Apparently, per some stock analyst , Harris Corp stock is downgraded. I [...]