How Investors Are Reacting To L3Harris (LHX) Securing Record GMLRS Contract And Expanding Missile Production

• L3Harris Technologies was awarded a follow-on production contract worth up to US$200 million to manufacture Guided Multiple Launch Rocket System Insensitive Munition propulsion units, marking the first order for its new Camden, Arkansas facility that boosts annual production capacity by more than 30%.
• This largest-ever 12‑month GMLRS IM award from Lockheed Martin to L3Harris underscores the company’s entrenched role in high-demand missile supply chains and its investment in expanded energetics manufacturing.
• We’ll now examine how this sizeable GMLRS contract, and the upgraded analyst view on L3Harris, interact with its existing investment narrative.

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L3Harris Technologies Investment Narrative Recap

To own L3Harris, you need to believe in sustained demand for advanced defense electronics and munitions, disciplined execution on complex programs, and steady U.S. and allied defense spending. The new US$200 million GMLRS propulsion award supports the near term missile and energetics growth catalyst, but does not fundamentally change key risks such as reliance on large fixed price contracts and budget decisions in space and other priority areas.

The recent Morgan Stanley upgrade to Overweight, with a higher US$367 price target, sits alongside this GMLRS win as part of a reinforcing story around L3Harris’ role in missile warning, tracking and munitions supply chains. Together with earlier revenue guidance increases and continued buybacks, it adds to the argument that management is leaning into demand, even as exposure to major defense acquisition programs and U.S. budget constraints remain important watchpoints.

Yet investors should also weigh how fixed price development contracts could affect margins if technical issues or schedule slippage emerge...

Read the full narrative on L3Harris Technologies (it's free!)

L3Harris Technologies' narrative projects $24.9 billion revenue and $2.7 billion earnings by 2028. This requires 5.2% yearly revenue growth and about a $1.0 billion earnings increase from $1.7 billion today.

Uncover how L3Harris Technologies' forecasts yield a $334.16 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community cluster between about US$334 and US$381 per share, showing how far individual views can stretch. You can set those against the current focus on U.S. defense budget growth as a key potential driver of L3Harris’ future performance and decide which assumptions feel more realistic.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth just $334.16!

Build Your Own L3Harris Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your L3Harris Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free L3Harris Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate L3Harris Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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