Market Overview

UPDATE: Oppenheimer Upgrades L-3 Communications Holdings to Perform as Valuation Reflects Headwinds

Share:
Related LLL
Earnings Scheduled For July 27, 2017
5 Undervalued Stocks That Could Trade 20% Higher

Oppenheimer raises its rating on L-3 Communications Holdings (NYSE: LLL) from Underperform to Perform.

Oppenheimer comments, "We had been Underperform on LLL for three reasons: its exposure to the Pentagon's Operations and Maintenance budget; its high percentage of services revenue (under severe growth and margin pressure); and the short-cycle nature of its products, which make it immediately sensitive to downward DoD budgetary pressures. While these headwinds are still materializing, LLL's current valuation (and 17% FCF yield) suggests that downside risk is now largely priced in. Moreover, with the pending spin-off of LLL's most vulnerable services segment, LLL's overall business mix no longer appears materially worse than that of most defense primes."

LLL closed at $67.19 on Friday.

Latest Ratings for LLL

DateFirmActionFromTo
May 2017BarclaysDowngradesOverweightEqual-Weight
Jan 2017RBC CapitalInitiates Coverage OnSector Perform
Dec 2016Bank of AmericaDowngradesBuyNeutral

View More Analyst Ratings for LLL
View the Latest Analyst Ratings

Posted-In: OppenheimerAnalyst Color Upgrades Price Target Pre-Market Outlook Analyst Ratings

 

Related Articles (LLL)

View Comments and Join the Discussion!