EarlyBirdCapital Downgrades Dynamics Research Corporation To Hold, Removes PT

EarlyBirdCapital has downgraded Dynamics Research Corporation DRCO from Buy to Hold and has removed the company's price target. In the report, EarlyBird writes, "DRCO announced its intention to acquire High Performance Technologies (HPTI – privately owned) for $143 million in cash, or about 11.7x TTM EBITDA (closer to 11.0x forward EBITDA). We applaud management's efforts in trying to increase the size of the core business, but we are downgrading the stock to a HOLD from a BUY as the risk profile has increased significantly." Dynamics Research Corporation closed Friday at $15.39.