Credit Suisse Downgrading ManTech International Corp.

Credit Suisse is out with a research report on ManTech International Corp. MANT and is downgrading shares to Underperform and is lowering its price target to $34 from $41. In a note to clients, Credit Suisse writes, "$Based on results so far this earnings season (see ex. 1), and on some precedent set in Q4 last year (when the GFY'11 Continuing Resolution began), gov services companies are generally showing greater coincident exposure to funding slowdowns than the product suppliers in the defense industry. While MANT believes it can achieve its affirmed guidance of $3.73, we see rising risk & uncertainty in the current federal funding environment. Further with roughly one-third of the company's business tied to Iraq & Afghanistan, we see further pressure as U.S. withdrawals progress. While MANT may eventually offset these pressures with an aggressive M&A plan, we see too many fundamental headwinds. Our 2011-13 forecast is now $3.50/$3.60/$3.64 from $3.62/$3.73/$3.87. Our $34 TP is 9.4x (15% peer discount) CY12E EPS." Shares of MANT closed at $42.25 yesterday.