The intelligence and surveillance company raised its quarterly dividend on Tuesday to 50 cents a share from 45 cents.
"Once repositioning actions are taken, L-3's operating profile will have firmer growth potential due to much reduced overseas punitive operations," Drexel Hamilton analyst Richard Whittington wrote in a report Monday.L-3 was upgraded to a buy from a hold by TheStreet Ratings. L-3 has an estimated price-to-earnings ratio for next year of 8.32; the average for defense companies is 13.16. For comparison, Curtiss-Wright (CW) and AeroVironment (AVAV) both have higher forward P/Es of 13.12 and 21.32, respectively. Twelve of the 17 analysts who cover L-3 rated it a hold. Two analysts considered L-3 a buy and three gave it a sell rating. TheStreet Ratings gives L-3 a B grade with a $81.68 price target. The stock closed Thursday at $70.47 and has risen 5.68% year to date.
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