Needham analyst James Ricchiuti raised his price target on Cubic to $70 after the company's decision to sell its Global Defense Services unit, saying it is part of the "multi-year makeover" designed to improve profitability. The analyst adds that the move will allow the company to focus on its core defense training and mass transportation solutions while also freeing up some cash to pursue larger M&A in "more attractive areas of the defense and intelligent transportation markets". Ricchiuti keeps his Buy rating on Cubic, but believes that "quite a bit of good news" has already been priced into the stock.