UPDATE: CRT Capital Upgrades L-3 Communications

L-3 Communications Holdings, Inc. LLL was upgraded to Fair Value by CRT Capital on Monday with the price target raised from $90 to $115.

Analysts Brian Ruttenbur and Corey Allen felt that "while additional fines and penalties are possible as well as increased expenses to upgrade the Company's ERP systems, we believe investors have ignored these risks and are valuing shares of LLL in-line with its peers."

Ruttenbur commented that the "$115 price target is based on an average of a pension-adjusted EPS multiple (13x) and a discounted cash flow analysis."

The report concluded that "2014 - 2015 EPS forecasts are $7.84 and $7.86" and that "LLL shares are trading at 14.7x our 2014 EPS estimate of $7.84, comparable to a peer group average of 15.6x."

L-3 Communications Holdings, Inc. closed at $109.25 Monday, down 5.12 percent.