Hold - Price 17.25 on Dec. 16
by Collins Stewart

We believe that as overall Department of Defense spending is pressured, a shift toward C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) spending will ensue, benefiting APSG. [Enterprise value/earnings before interest, taxes, depreciation and amortization] is around 7.5 times, versus an eight times average the past few years. This is about a 15% premium to peers, but [recently] the multiples of companies serving C4ISR markets have increased...[which we see as] sustainable...[as such,] companies become acquisition targets. Market cap: $220 million.

OWN STOCK

growth

3.5% yield

Downgraded by CIBC Wrld Mkts from Sector Perform to Sector Underperform