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Drexel Hamilton Starts Harris Corp. (HRS) at Hold; Curse and a Blessing - Those High-Margin Radios

April 25, 2012 7:42 AM EDT Send to a Friend
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Price: $72.75 --0%

Rating Summary:
    4 Buy, 7 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Drexel Hamilton initiates coverage on Harris Corp. (NYSE: HRS) with a Hold.

Analyst, Peter J. Skibitski, said, "We are initiating coverage of Harris with a Hold due to what we see as difficult comparisons in the military radio business...Although we expect backlog to build in 3Q12 on large orders from Australia, U.S. special forces, the Marine Corps, and others, we think DOD budget pressures and the war draw down will provide headwinds to HRS’ highest margin business."

"Still, we think HRS shares will largely retain their value, given reasonable valuation, the ability to repurchase 8-10% of shares annually at current prices (by our calculations) and a respectable 3% dividend yield...We would look to get more positive on the shares on a pullback, along with reversal of the DOD sequester."

For an analyst ratings summary and ratings history on Harris Corp. click here. For more ratings news on Harris Corp. click here.

Shares of Harris Corp. closed at $43.83 yesterday.




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