Thu, Aug. 25, 11:47 AM
- L-3 Communications (LLL +1.5%) is J.P. Morgan's new top pick among defense stocks, upgrading shares to Overweight from Neutral with a $182 price target, raised from $158, while downgrading Northrop Grumman (NOC +0.4%) to Neutral from Overweight with a $231 price target.
- The firm expects L-3 to generate 5% compound annual free cash flow growth through 2020, the second highest level among the defense stocks it covers, while the stock trades at the second lowest free cash flow multiple among the defense stocks covered.
- But JPM recommends taking profits on NOC, saying cash flow estimates are below consensus due to capex projections, the company's cash return yield is no longer exceptional, and it has a low dividend yield.
- The firm maintains Lockheed Martin (LMT +0.3%) with a Neutral rating and $284 price target.
Mon, May 2, 8:25 AM
- Goldman's Noah Poponak upgrades L-3 Communications (NYSE:LLL) to Buy from Neutral and increased his price target to $156 from $138.
- The analyst said the company has underperformed the Defense peer group for the last two years, but believes the bar remains low and sees room for upward estimate revisions.
- Poponak also sees the U.S. Defense budget at a trough and expects that to translate to an acceleration in L-3 organic revenue growth and margin improvement ahead.
- LLL +2.7% premarket
Dec. 4, 2015, 4:08 PM
- L-3 Communications (LLL +2.7%) is exclusively talking with CACI International (CACI +1.2%) about selling its government services division, National Security Solutions, and a deal for around $550M is imminent, Reuters reports.
- The agreement could be announced as soon as next week, sources said., though negotiations are confidential.
- L-3 shares have gained 18.5% over the past three months. For its part, CACI closed at $101.64, a bit below Tuesday's 52-week high of $104.09; it's gained 34% over the past three months.
Nov. 16, 2015, 10:33 AM
- Aerospace and defense shares are on the rise after calls to increase efforts to crush ISIS, the terrorist group responsible for Friday's attacks in France.
- Previously: World leaders wrap up G20 summit (Nov. 16 2015)
- Previously: French warplanes strike Islamic State targets in Syria (Nov. 15 2015)
- Related tickers: General Dynamics (GD +0.6%), Boeing (BA +0.2%), Northrop Grumman (NOC +3.2%), Lockheed Martin (LMT +2.5%), Raytheon (RTN +2.4%), Orbital ATK (OA +3.8%), Rolls-Royce (OTCPK:RYCEY +2.2%), Huntington Ingalls (HII +1.1%), Honeywell (HON +0.9%), United Technologies (UTX +0.4%), Airbus (OTCPK:EADSF), ITT (ITT +0.6%), Textron (TXT +1.7%), L-3 Communications (LLL +2.3%), BAE Systems (OTCPK:BAESY +2%), Finmeccanica (OTCPK:FINMY), Rockwell Collins (COL +1.7%).
Oct. 10, 2014, 3:07 PM
- Revising its Q2 numbers in a 10-Q filing, L-3 Communications (LLL +11.2%) identified material weaknesses in internal controls over financial reporting, and says it received subpoenas from the SEC and Justice after contacting authorities over the summer about the issues.
- Share repurchases during Q2 totaled 1.68M, or roughly 2% of the float.
Jul. 31, 2014, 12:45 PM
Aug. 1, 2011, 4:33 PMAside from Medicare-dependent firms (I, II), defense contractors (PAA -1.2%) also have much to fear from "devastating" cuts via a debt deal. The Pentagon would take fully 50% of cuts imposed by any triggered second round of $1.2T in cuts, Lazard analyst Michael Lewis warns. LMT -1.7%, RTN -0.9%, NOC -1.5%, GD -0.9%, SAI -2.7%, LLL -3.2%. | Aug. 1, 2011, 4:33 PM | 2 Comments
Jun. 22, 2011, 10:23 AMActivist investment firm Relational Investors is expected to report that it has become the largest shareholder in L-3 Communications (LLL +4.7%) and is pushing for a breakup of the defense firm, WSJ reports. Relational reportedly wants L-3 to get rid of what it believes are low-margin or slow-growing businesses, including its government services unit. | Jun. 22, 2011, 10:23 AM
May 23, 2011, 2:52 PM
Apr. 13, 2011, 3:37 PM
All the talk about budget cuts, including Obama’s plan, sparks a Goldman warning on the defense sector: "Declines in base investment in 2011 outcome represent an outcome worse than we expected when we first downgraded the Defense sector," and 2012 cuts will be "similar to if not more than" 2011. LMT -2.5%, NOC -2%, LLL -1.7%, RTN -2.8%, GD -1.2%, BA -1.3%.| Apr. 13, 2011, 3:37 PM | 1 Comment