Oppenheimer Upgrades L-3 Communications (LLL) to Perform; Valuation Factors In Downside
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Price: $85.81 -1.79%
Rating Summary:
1 Buy, 11 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
1 Buy, 11 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade LLL Now!
Oppenheimer upgraded L-3 Communications (NYSE: LLL) from Underperform to Perform.
Analyst, Yair Reiner, said, "We had been Underperform on LLL for three reasons: its exposure to the Pentagon's Operations and Maintenance budget; its high percentage of services revenue (under severe growth and margin pressure); and the short-cycle nature of its products, which make it immediately sensitive to downward DoD budgetary pressures. While these headwinds are still materializing, LLL's current valuation (and 17% FCF yield) suggests that downside risk is now largely priced in. Moreover, with the pending spin-off of LLL's most vulnerable services segment, LLL's overall business mix no longer appears materially worse than that of most defense primes."
"FY12 estimates go to $14.0B and $8.18 from $14.6B and $8.56. We're also introducing FY13 estimates of $12.8B and $8.69."
For an analyst ratings summary and ratings history on L-3 Communications click here. For more ratings news on L-3 Communications click here.
Shares of L-3 Communications closed at $67.19 yesterday, with a 52 week range of $58.30-$88.55.
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Analyst, Yair Reiner, said, "We had been Underperform on LLL for three reasons: its exposure to the Pentagon's Operations and Maintenance budget; its high percentage of services revenue (under severe growth and margin pressure); and the short-cycle nature of its products, which make it immediately sensitive to downward DoD budgetary pressures. While these headwinds are still materializing, LLL's current valuation (and 17% FCF yield) suggests that downside risk is now largely priced in. Moreover, with the pending spin-off of LLL's most vulnerable services segment, LLL's overall business mix no longer appears materially worse than that of most defense primes."
"FY12 estimates go to $14.0B and $8.18 from $14.6B and $8.56. We're also introducing FY13 estimates of $12.8B and $8.69."
For an analyst ratings summary and ratings history on L-3 Communications click here. For more ratings news on L-3 Communications click here.
Shares of L-3 Communications closed at $67.19 yesterday, with a 52 week range of $58.30-$88.55.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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