Jefferies Raises Price Target On Rockwell Collins

Jefferies maintains its Hold rating on shares of Rockwell Collins ROC and raises its price target to $60 form $55. It recognizes the quality of the business and opportunities in military and commercial communications and navigation markets. Jefferies believes a premium valuation, along with some headwinds in military avionics, will limit share price appreciation in the near-term. Rockwell Collins continues to mindful of market risks and opportunities. Its work on the 787 should begin to bear some fruit in the upcoming year as Boeing begins to ship the aircraft in 2011. Collins has also taken a portfolio approach with respect to the business jet market. Jefferies sees little rebound until 2012, but COL has some growth with new models such as the CJ4. Outside of cockpit avionics, Collins continues to find opportunity in the back of the cabin. We expect the company to continue to develop additional services and products to make the travel experience more productive for passengers and crew. New solutions should help to stimulate demand in this challenging market. COL is trading lower at $56.57