UPDATE: Bank of America Upgrades L-3 Communications Holdings to Neutral Following 2Q13 Results
In a report published Friday, Bank of America analyst Ronald J. Epstein upgraded the rating on L-3 Communications Holdings (NYSE: LLL) from Underperform to Neutral, and raised the price target from $77.00 to $97.00.
In the report, Bank of America noted, “We are upgrading L-3 Communications to Neutral from Underperform post 2Q13 results. Consistent with other defense companies that have reported earnings, LLL is navigating the challenging defense budget backdrop better than we had expected. Furthermore, returning cash to shareholders has continued to be a focus for the company. YTD dividends and share repurchases have totaled $349mn, more than 100% of free cash flow. For the full year 2013, LLL's capital deployment strategy factors in $500mn of share repurchases and $200mn of dividend payments. Given the potential pension tailwind, better than expected execution, and lower sequestration headwind than we expected, we are reevaluating our forecasts for the company.”
L-3 Communications Holdings closed on Thursday at $92.04.
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