L-3 Demonstrates Strength - Analyst Blog
L-3 Communications Holdings, Inc. (
LLL) delivered strong operating results and robust cash flow in fiscal 2008 wherein the company delivered growth across its business segments despite divestitures, higher pension funding, and declining Linguist revenues.
Looking forward, along with a healthy backlog position, an ongoing repurchase program, and a favorable industry outlook, earnings growth will come through both organic and accretive acquisitions. Accordingly, we reiterate our BUY recommendation on LLL common stock with a 6-month target price of $86.00.
Price appreciation to our near-term valuation target, combined with $0.30 per share quarterly dividend which we deem to be sustainable and secure based upon low projected earnings payouts represents annualized total return potential of 21.6%.
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