1-AUG-18 – Arotech (ARTX:NA) Dropping coverage based on lack of visibility of future cashflows from an uncertain pipeline in securing contracts.

Analyst Notes

  • Although ARTX’s Training and Simulation Division and Power Systems Division are both promising in generating future revenues and earnings, we view that the pipeline of securing contracts, heavily dependent on government business, provides too much uncertainty of future results
  • The uncertainty of securing contracts and the lack of visibility of future cash flows presents excessive risk. We elect to redirect our resources for opportunities that have more certainty in their operations. As a result we will be no longer updating our financial estimates and changing our rating to DROP.

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