Continued strength in the US government IT services sector's operating fundamentals

01/05/04 - BB&T Capital Markets

NEW YORK, January 5 (New Ratings) — Analysts at BB&T Capital Markets express their optimism regarding the robust operating fundamentals in the US government IT services sector this year.

In a research note dated January 2 and published this morning, the analysts mention that the US government IT services sector considerably outperformed the broader market trends in 2003. SCB Computer Technology (SCBI) and Tyler Technologies (TYL) outpaced its peers within the sector, BB&T Capital Markets says. However, the analysts anticipate only modest upside potential from the current valuations of the government IT services stocks in the near term.