Wachovia Keeps Underperform on Titan
Wachovia keeps its underperform rating on Titan (TTN ).
Analyst Edward Caso says technology developer Titan doesn't expect to complete a plea deal with the Justice Dept. concerning allegations of violation of Foreign Corrupt Practices Act by the June 25 deadline set in its merger agreement with Lockheed Martin. Titan said Lockheed is unwilling to extend the deadline, so Lockheed can now terminate the deal, and he expects that to be the case.
Caso believes Lockheed doesn't face a breakup fee. He doesn't see the emergence of any other potential acquirers for Titan until the Justice Dept. issue is cleared up. He keeps the 76 cents 2004 and 90 2005 EPS estimates. With the loss of the deal, he expects Titan to trade in the $13 to $15 range.