Update shared on12 Sep 2025
Fair value Increased 0.95%The consensus analyst price target for L3Harris Technologies rose to $302.58 on the back of strong Q2 results, higher future guidance, and improved sector sentiment amid rising defense spending, despite some margin and program risks.
Analyst Commentary
- Bullish analysts cite strong Q2 results and continued momentum, leading to higher guidance for 2025 and increased 2026 targets.
- Anticipation of significant benefits from emerging Department of Defense (DoD) programs and shifting U.S. defense priorities supports upward price target revisions.
- The extension of defense spending growth, driven by new mandatory funding approved via the Reconciliation bill and rising global threat levels, is seen as a key positive for top-line growth.
- Margins remain "noisy" and U.S. defense remains described as a "mixed bag," prompting some analysts to maintain neutral or hold ratings despite price target increases.
- Improving budget trends and sector inflection potential around Q2 reporting are expected to help restore investor confidence in L3Harris Technologies' outlook.
What's in the News
- China has begun limiting the supply of critical minerals essential for Western defense manufacturers, causing production delays and forcing companies such as L3Harris Technologies to seek alternative sources (WSJ, 2025-08-04).
- China supplies about 90% of the world’s rare earths, increasing the risk of supply chain disruption for defense companies including L3Harris Technologies (WSJ, 2025-08-04).
- The U.S. administration has proposed a defense budget of $892.6B, flat year-over-year, prioritizing pay raises for troops and increased spending on high-tech missiles and drones (Reuters, 2025-06-26).
- The proposed budget includes fewer ships and fighter jets, with potential job cuts at the Navy, but maintains procurement focus on advanced defense technologies relevant to L3Harris Technologies (Reuters, 2025-06-26).
Valuation Changes
Summary of Valuation Changes for L3Harris Technologies
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $299.74 to $302.58.
- The Future P/E for L3Harris Technologies remained effectively unchanged, moving only marginally from 25.36x to 25.59x.
- The Consensus Revenue Growth forecasts for L3Harris Technologies remained effectively unchanged, at 5.2% per annum.
Disclaimer
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