UPDATE: Credit Suisse Initiates Exelis at Neutral on Headwinds

Credit Suisse initiated coverage on Exelis

with a Neutral rating and a $12 price target. Credit Suisse noted, "While we view XLS' 24% peer discount on '13 P/E as extreme, there are headwinds that could keep shares range-bound, including a likely cash restructuring that plays out in '13. Additionally, the revenue/EPS drop is worse for XLS in '13 than peers. That said, XLS could see sales bottom before some with less war exposure (~'14), and given the discount, may invite interest in a few quarters as others begin to see greater pressure." Exelis closed at $11.72 on Monday.