AnalystConsensusTarget updated the narrative for LHX

L3Harris Technologies has seen its analyst price target rise from $302.58 to $309.11, as analysts point to stronger growth prospects and favorable defense spending trends.

Analyst Commentary

Recent analyst notes on L3Harris Technologies reflect a constructive outlook for the stock, as well as some ongoing caution around certain aspects of the company's performance and the broader defense environment.

• Bullish analysts have raised price targets, citing accelerating growth trends and improving momentum in the aerospace and defense sector.
• Strong quarterly results and upward revisions to guidance signal confidence in L3Harris Technologies’ ability to capture new opportunities from emerging Department of Defense programs and shifting priorities.
• Expanded mandatory defense funding and sustained international defense spending are seen as positive catalysts for an extended period of growth in the company’s addressable market.
• Improving budget trends and expectations for solid sector performance in upcoming reporting periods provide support for elevated valuation levels.

• Bearish analysts maintain a cautious stance, citing persistent margin volatility which could impact the company’s ability to deliver stable earnings growth.
• Despite improved growth prospects, some maintain neutral or sector perform ratings, suggesting lingering execution questions that may moderate the stock’s upside potential.
• Heightened expectations around future performance may create additional pressure in upcoming quarters, especially if key issues are not fully addressed or sector-wide inflection points fail to materialize.

What's in the News

• The Pentagon is urging missile suppliers to double or even quadruple missile production rates amid growing concerns over a potential future conflict with China. This has prompted high-level meetings with major defense contractors, including L3Harris Technologies (The Wall Street Journal).
• The U.S. Defense Secretary has called an urgent meeting of top military commanders to discuss strategic priorities, with L3Harris among the key defense suppliers highlighted in reports (The Washington Post).
• China has imposed limits on the supply of critical minerals essential to Western defense manufacturers. This is causing delays in production for companies like L3Harris Technologies and driving global efforts to secure alternative supply sources (The Wall Street Journal).
• L3Harris Technologies hosted leaders to showcase its newest solid rocket motor production facility, AMF-South, in Huntsville, Alabama. The facility is designed to meet surging missile defense needs and currently supports programs such as the Standard Missile, Guided Multiple Launch Rocket System, and Javelin.
• L3Harris has received a contract of up to $292 million for extended propulsion production for the Javelin weapon system. This is the largest contract to date for the program and represents a five-year production extension.

Valuation Changes

• Consensus Analyst Price Target has risen slightly from $302.58 to $309.11, reflecting a modest upward revision based on growth prospects.
• Discount Rate has fallen marginally from 8.14% to 8.14%, indicating a minimal decrease in perceived market risk.
• Revenue Growth Estimate has increased slightly from 5.20% to 5.20%, suggesting a small boost in expected top-line expansion.
• Net Profit Margin projection has risen modestly from 10.76% to 10.79%, indicating incremental improvement in profitability expectations.
• Future P/E Ratio has moved up from 25.59x to 26.05x, pointing to mildly higher valuation multiples applied to forward earnings.