UPDATE: Bank Of America Upgrades L-3 Communications On Increased Upside

In a report published Thursday, Bank of America analyst Ronald J. Epstein upgraded the rating on

from Underperform to Buy, and raised the price target from $117.00 to $146.00. In the report, Bank of America noted, “We are upgrading LLL to Buy from Underperform. We are raising our PO to $146 from $117. The most significant driver for the double upgrade is the change in our valuation methodology for LLL to DCF, which better captures LLL's capital deployment strategies and pension treatment as employed by defense pure plays, in our view. Previously, we were valuing the company using relative valuation with P/E multiples. Our updated PO implies 20% upside to the current stock price.” L-3 Communications closed on Wednesday at $121.06.