Goldman Sachs Fools Small Investors Again?

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There is one more defense stock Goldman analysts had on their Conviction Buy list in January: L3 Technologies Inc (NYSE:LLL). Goldman said the stock was deeply undervalued compared to its peers on the basis of Free Cash Flow yield, Price to Earnings ratio and the Enterprise Value to EBITDA ratio. The firm also estimated a 9% upside potential for L3 Technologies in 2018.

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L3 Technologies Inc (NYSE:LLL) established its all-time high at $218.71 on January 29 and then continued to trade sideways, only to enter a selloff last week together with the rest of the defense industry. The company released its first quarter financial report on Tuesday, managing to surpass Wall Street’s expectations. The better-than-expected results failed to prop up the stock, however, and it fell 5% during Tuesday’s session. L3 Technologies Inc (NYSE:LLL) is currently down by 10.7% since Goldman’s note to investors.

Disclosure: none.

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