UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on L-3 Communications Holdings on Potential Portfolio Shaping, NSS Divestiture

In a report published Wednesday, Deutsche Bank analyst Myles Walton reiterated a Buy rating on L-3 Communications Holdings LLL, and raised the price target from $102.00 to $105.00. In the report, Deutsche Bank noted, “In July 2012, LLL successfully spun off EGL and in the process raised $325M of proceeds for LLL and lowered LLL's exposure to a short-cycle, highly competitive market with more exposure to overseas force reduction. With a little over one-year removed from the spin, we think the time is right to take another look at potential portfolio shaping with a divestiture of NSS possibly making sense at this point to further rationalize the business. In our view, the move would complete a portfolio transformation from 30%+ exposure to low-margin service sales to just 5% on a proforma basis. Given upside to our modestly revised multiples-based PT, reiterate Buy.” L-3 Communications Holdings closed on Tuesday at $95.52.