L3 downgrade

By TSC Staff12/19/2006 12:32 PM EST

L-3 Communications (LLL - commentary - Cramer's Take - Rating) shrugged off a Credit Suisse downgrade Tuesday, a day after the New York defense contractor was hit by a big government contract loss.
Credit Suisse said Tuesday it is downgrading the stock to neutral from outperform, based on Monday's surprise loss of an Iraqi linguist contract with the U.S. Army. Credit Suisse cut its target price to $83 from $88.
L-3 dropped nearly 6% Monday after cutting financial targets to adjust for the lost translation contract. The company said the Army didn't renew a deal to supply the military with translators and linguists in Iraq, Afghanistan and Guantanamo Bay, Cuba.
Without the contract, L-3 says it now expects 2007 sales to be about $13 billion, down from the $13.5 billion originally planned. Analysts had been looking for revenue of $13.5 billion.
L-3 rose 61 cents Tuesday to $79.61.