L-3 Communications Holdings (LLL) Downgraded to Sell at CRT Capital, Price Target Lowered

L-3 Communications Holdings Inc. (LLL) shares are down more than 16% this morning after the company received a downgrade to ‘Sell’ from ‘Fair Value’ at CRT Capital on accounting concerns. The firm also lowered its price price target on the stock to $90 from $102. CRT Capital’s new LLL target price points to a potential downside of 11.76% from the stock’s current price-per-share.

A number of other investment firms have also come out with their opinions about L-3 Communications Holdings. In a note on July 9, analysts at Deutsche Bank (DB) maintained a ‘Buy’ rating and a $131.00 price target on the company. Credit Suisse (CS) analysts upgraded their ‘Neutral’ rating to an ‘Outperform’ rating on LLL in a research note on May 16. In a research note issued to investors on May 15, analysts at Bank of America (BAC) upgraded their ‘Underperform’ rating to a ‘Buy’ rating on the shares of L-3, and placed a price target of $146.00 on the stock. Finally, analysts at JP Morgan (JPM) upgraded their ‘Neutral’ rating to an ‘Overweight’ rating on L-3 Communications in a note to clients on May 5th, placing a price target of $135.00 on the stock.

LLL currently trades at a trailing-12 P/E of 11.88, a forward P/E of 11.24 and a P/E to growth ratio of 3.45. The median Wall Street price target on the company’s stock is $130.50 with a high target of $146.00.

Profitability-wise: L-3 Communications’ trailing-12 profit margin currently stands at 6.15% while operating ones are at 10.35%. The $8.65 billion market cap company reported $227 million in cash vs. $3.65 billion in debt in its most recent quarter. L-3 has a 52 week low of $90.07 and a 52 week high of $127.27. The stock’s 50-day moving average is $121.73 and its 200-day moving average is $116.69.

The chart below shows where the equity has traded over the last 52 weeks, with the 50-day and 200-day MAs included.

In today’s session, the equity is changing hands at $100.18 a share. LLL is up 7.63% year-over-year, and down 6.18% year-to-date.

L-3 Communications Holdings, Inc. provides national security solutions in the United States and internationally. The company was founded in 1997 and is headquartered in New York, New York.

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