WASHINGTON—Shares of Stanley Inc. fell sharply Tuesday after Stifel Nicolaus & Co. downgraded the stock on valuation.
In a research note, Stifel analysts William Loomis and James Harlow cut their rating on the provider of information technology services to "Hold" from "Buy" because the stock has hit their target price of $37 a share.
The analysts noted that stock has been climbing since Stanley beat Wall Street's estimates for its fiscal first quarter late last month.
They added that the Arlington, Va.-based company, which serves military and government customers, is benefiting from strong demand for passport processing and visa applications, as well as contracts with the Army, Navy and Marines.
Stanley's shares fell $3.08, or 8.3 percent, to $33.98. The stock has ranged from $18.77 to $38.53 over the past year.
