Booz Allen lower after downgrade

• “Troop drawdowns and stagnant budgets are leading defense firms to pursue the same growing portions of the budget thereby increasing competitive pressures throughout the industry," says Morgan Stanley's Denny Galindo, downgrading Booz Allen Hamilton (BAH -3.4%) to Underweight with $23 price target.
• Upcoming spinoffs will add to competition, making margin expansion difficult, he adds, noting the company has delivered annual margin expansion of 55 basis points since 2010.