UPDATE: L-3 Communications Downgraded at Bank of America

A report published Tuesday morning by Bank of America has downgraded L-3 Communications Holdings

from Neutral to Underperform, according to analyst Ronald Epstein. Price target remains at $106. Epstein noted, "In our view, LLL remains vulnerable to cuts as more than half of its business comes from short-cycle contracts and 22% of 2012 sales were derived from the US Army." LLL closed Monday at $105.58 and is currently trading down to $105.21.