Boenning & Scattergood Announces Investment Opinion on ArgonST, Inc

Business Wire, Oct 2, 2008

WEST CONSHOHOCKEN, Pa. -- Boenning & Scattergood initiated coverage of ArgonST Inc. (NASDAQ: STST) today with a Market Outperform rating and 12-month price target of $28. ArgonST designs and manufactures C4ISR solutions focused around sensors, signal intelligence, tracking and warning systems, and electronic warfare. Our investment thesis includes the following factors:

* As a leading pure-play signal intelligence provider, ArgonST is likely to reap the benefits of a growing C4ISR market.

* ArgonST's COTS business model and program-lifecycle philosophy provide a sustainable competitive advantage while positioning the company for future success.

* Current programs and potential contract wins provide a more-than-adequate growth platform.

* ArgonST's growth potential is likely to overshadow its average operating metrics.

* We expect military transformation and modernization spending to continue on its upward trajectory, regardless of Presidential election noise or war outcomes.

* Premium valuation justified, use pullback as buying opportunity.

About Boenning & Scattergood: Founded in 1914, Boenning & Scattergood, Inc. is the oldest independently owned investment securities firm in the Philadelphia region. The firm offers a full compliment of investment services to institutional, retail and corporate clients, including research, sales, trading, investment banking and public finance. For more information, please visit www.boenninginc.com. Member SIPC/FINRA.

This release is neither an offer to sell nor a solicitation to buy any securities mentioned herein. Please refer to the full report, which is available upon request, for additional details, risks and disclosures.