UPDATE: Bank of America Downgrades Raytheon to Underperform on Valuation

Bank of America reduced its rating on Raytheon RTN from Neutral to Underperform with a reiterated $56 price objective. Bank of America commented, "We are downgrading RTN to Underperform from Neutral based on valuation. YTD, RTN appreciated 18.2%, 3.5 percentage points above the S&P 500 Index price performance. The stock is trading above our $56 price objective and we see risk to the downside from current levels. In our view, there are less positive near- term catalysts for the stock as the cash deployment thesis for RTN played out in the first half of 2012 as the company raised its quarterly divided to 50¢ from 43¢ in March and announced its share repurchase plan." Raytheon closed at $57.16 on Friday.