UPDATE: Jefferies Initiates Exelis at Buy on Valuation and Porftolio Attractiveness

Jefferies initiated coverage on Exelis

with a Buy rating and a $13.50 price target. Jefferies said, "Exelis currently trades at a deep discount to its peer group. The stock trades at 3.8x EV/2013 EBITDA and 6.1x 2013 EPS. This compares to the peer group which trades at 6.0x and 10.2x, respectively. … About 50% of Exelis' portfolio consists of C4ISR Electronic Systems. The business develops electronic warfare systems, sensors, radars, and communication products. One example is retrofitting F-16s and F/A-18 with countermeasure systems. Key to our forecast is the company's ability to continually support and upgrade a large installed base of radios, jammers, and night vision devices." Exelis closed at $10.34 on Friday.