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UPDATE: Bank of America Downgrades L-3 Communications Holdings to Underperform on Downside Risk

Related LLL
UPDATE: CRT Capital Upgrades L-3 Communications
Markets Debut Week On Negative Note; S&P 500 Falls Through Key Level

Bank of America downgraded L-3 Communications Holdings (NYSE: LLL) from Neutral to Underperform and raised the price objective from $76.00 to $77.00.

Bank of America noted, "Since the end of 2011, LLL shares appreciated 17%. We see downside risk to current levels as we factor in declining US domestic defense outlook. We expect 2013 sales to decline 3% to $12.7bn and 2014 sales to decline another 3% to $12.4bn. Despite the deteriorating backdrop, we believe that LLL could hold on to operating margins of 10.0%, as management cuts variable costs to respond to lower volumes. In our opinion, management's current cash deployment strategy, which is weighted heavier toward share repurchases, may not be enough to offset earnings contraction."

L-3 Communications Holdings closed at $75.13 on Friday.

Latest Ratings for LLL

DateFirmActionFromTo
Oct 2014CRT CapitalUpgradesSellFairly Valued
Sep 2014OppenheimerUpgradesMarket PerformOutperform
Aug 2014BarclaysMaintainsEqual-weight

View More Analyst Ratings for LLL
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Analyst Ratings

 

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