L-3 Communications stock is cheap-Barron's

NEW YORK, Nov 8 (Reuters) - Though defense stocks have fallen out of favor, L-3 Communications Holdings (LLL.N: Quote, Profile, Research) could prosper due to its businesses serving a growing demand for unmanned aircraft and other technology used in so-called asymmetrical warfare, Barron's said on Sunday.

L-3's shares are attractive at $76, or 9.5 times estimated 2010 earnings, a multiple representing a 30 percent discount to its rivals.

The company is on track to earn $7.51 a share this year, with profit expected to climb over the next two years driven by higher sales and wider profit margins, Barron's said in its Nov. 9 issue. (Reporting by Joseph A. Giannone, editing by Maureen Bavdek)