UPDATE: J.P. Morgan Downgrades L-3 Communications Holdings to Underweight on Exposed Earnings

In a report published Monday, J.P. Morgan analyst Joseph B. Nadol III downgraded the rating on L-3 Communications Holdings LLL from Neutral to Underweight, and lowered the price target from $80.00 to $72.00. In the report, Nadol noted, “We rate LLL UW since we view the company's earnings as among those most exposed to defense budget pressure given the short cycle nature of its business, its relatively high degree of financial leverage and the relatively high proportion of sales it generates from supplemental budgets.” L-3 Communications Holdings closed on Friday at $82.40.