Raymond James cut MTC Technologies (MTCT ) to market perform.
CEO Mike Solley will resign on Oct. 3, 2003. Analyst John Mahoney says he downgraded the information-technology services company from strong buy on the belief this type of management turmoil will be viewed negatively by investors. He says David Gutridge, who fills the CEO void, is a very capable, forthright, and conservative manager.
He believes MTC is well positioned, and its more than $1.1 billion in cash and short-term investments gives him extraordinary comfort in MTC's long-term prospects. However, he thinks it's more prudent in the short term to wait on the sidelines to see what comes of this resignation.
Mahoney keeps the 90 cents 2003 earnings per share estimate, and the $1.10 2004 earnings per share estimate.