Barron's Quote of Benchmark's Downgrade: "Flir Systems (FLIR: Nasdaq) By Benchmark Co. ($27.00, Sept. 28, 2010)
WE ARE DOWNGRADING Flir Systems to Hold [from Buy], and lowering our price target from $36 to $28.
We view Flir (ticker: FLIR) as a top-quality company leading the global infrared market, but we are more cautious, and believe delays in key U.S. opportunities, and delays in the Government fiscal 2011 (GFY11) defense budget represent growing risk for Flir's government business next year. ..."
Isn't FLIR's government business only 30% of revenues? Anyone have the exact figure?
30 percent is close enough for government work(I just couldn't let that fly off the radar, even though I really tried). More seriously, it's right about there.
Another decent data point about analyst changes. The defense budget delays are NOT new news. Benchmark finally comes out and downgrades and then Barron's jumps on the wagon. Where the h$ll were these braniacs when FLIR was north of $30? It's pile on time folks. I expect more especially if the market pulls back. However, the funny part will be that the new downgrades will probably not occur until after FLIR bottoms and starts to recover.
Anyone want to wager a greasy burger and a beer on this prediction?