Barclays Maintains an 'Overweight' on L-3 Communications (LLL); Initial Guidance: Conservative?
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Price: $0.84 --0%
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
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Barclays maintains an 'Overweight' on L-3 Communications (NYSE: LLL) price target of $92.00.
Barclays analyst says, "Yesterday, LLL hosted its annual investor conference in New York, which was well attended and detailed as usual. The company used the event to provide initial 2012 earnings and segment level guidance - the first of the large defense primes to do so in any detail. Initial guidance was lower than we expected, largely due to lighter than expected revenues, but also slightly lower margins relative to our estimates. Ultimately, we think investors came away questioning whether guidance could be best characterized as signaling unforeseen weakness or instead representing a more conservative stance by management given top line misses seen in LLL's recent past."
"Given the current uncertain environment, we think it may be too early to characterize this as likely upside to EPS, but we note that it's possible. For now, we have updated both our 2011 and 2012 EPS estimates to fall within the company's revised guidance. Given the low valuation for LLL shares (35% discount to the S&P 500 based on 2012 estimates) we retain our OW rating." Barclays lowers FY11 EPS estimate from $8.80 to $8.70 and FY12 from $8.70 to $8.50
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 $67.02 yesterday.
Barclays analyst says, "Yesterday, LLL hosted its annual investor conference in New York, which was well attended and detailed as usual. The company used the event to provide initial 2012 earnings and segment level guidance - the first of the large defense primes to do so in any detail. Initial guidance was lower than we expected, largely due to lighter than expected revenues, but also slightly lower margins relative to our estimates. Ultimately, we think investors came away questioning whether guidance could be best characterized as signaling unforeseen weakness or instead representing a more conservative stance by management given top line misses seen in LLL's recent past."
"Given the current uncertain environment, we think it may be too early to characterize this as likely upside to EPS, but we note that it's possible. For now, we have updated both our 2011 and 2012 EPS estimates to fall within the company's revised guidance. Given the low valuation for LLL shares (35% discount to the S&P 500 based on 2012 estimates) we retain our OW rating." Barclays lowers FY11 EPS estimate from $8.80 to $8.70 and FY12 from $8.70 to $8.50
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 $67.02 yesterday.
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