UPDATE: Stifel Nicolaus Initiates Harris Corporation with Hold on Expected Revenue/Margin Declines

In a report published Tuesday, Stifel Nicolaus analyst William Loomis initiated coverage on Harris Corporation HRS with a Hold rating. In the report, Loomis noted, “While we like the company's capital deployment strategy, relatively high and growing exposure to commercial and international sales, and lack of exposure to big ticket U.S. weapons platforms, we expect revenue and margin declines over the next couple of years due to growing U.S. federal budget pressure, a reduction in demand for tactical communications products as U.S. troops withdraw from overseas, increasing exposure to the challenged federal services market as well as increasing industry headwinds, including award delays and pricing pressure.” Harris Corporation closed on Monday at $50.46.