UPDATE: Imperial Capital Initiates Rockwell Collins at In-Line with $55 PT

Imperial Capital initiated its coverage on Rockwell Collins

with an In-Line rating and a price target of $55 a share. Imperial Capital noted, "We believe COL stock will be held in check by the continued uncertainty over defense spending (~55% of sales), the slower than expected recovery in business jet original equipment (OE) markets, and softer than expected commercial aftermarket. We believe COL represents a longer-term attractive franchise, with industry leading margins, significant market share gains, and better than industry execution capabilities, but we need better visibility on the Government Systems segment and potential upside to our commercial market expectations before we get more constructive on the stock." Rockwell Collins closed at $49.55 on Thursday.