Jefferies Changes Estimates On L-3 Comm.

According to Jefferies, L-3 Comm. Hldings (NYSE: LLL) continues to follow a conservative path during a period of uncertainties in its markets.

Jefferies reported that its top five programs account for about 12% of revenues, with the largest being work at Ft. Rucker, for a little over $400 milion or about 3% of revenues. “Our price target of $82/share values shares of LLL at approximately 9.7x our 2011 EPS estimate of $8.40, which is in-line with the peer group average multiple on forward earnings. Key investment risks include an inability to grow revenues due to loss of contracts or lower margins due to increased competition under new Pentagon guidelines.”

L-3 Comm. Hldings closed yesterday at $78.31.