How L3Harris’ Role in Faster U.S. Weapons Procurement At L3Harris Technologies (LHX) Has Changed Its Investment Story

• In recent days, L3Harris Technologies has been highlighted as a key player in the U.S. push to accelerate weapons production, as government leaders move to overhaul the defense acquisition system and defense tech firms increase their share of Pentagon contracts.
• Comments from L3Harris CEO Chris Kubasik about combining the strengths of established contractors and newer defense tech entrants underscore the company’s central role in shaping future U.S. defense capabilities and industry capacity.
• We’ll now examine how this renewed U.S. focus on faster weapons acquisition could influence L3Harris’s existing investment narrative and outlook.

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L3Harris Technologies Investment Narrative Recap

To own L3Harris, you need to believe in sustained demand for advanced, mission‑critical defense technology and the company’s ability to convert that into profitable, executable programs. The recent U.S. push for faster weapons acquisition supports this thesis but does not fundamentally alter the near term balance between the key catalyst of robust defense spending and the ongoing risk of U.S. budget constraints, particularly in space related programs.

Among recent developments, the memorandum of understanding with EDGE Group in the UAE looks especially relevant, as it speaks to L3Harris’s efforts to deepen international defense ties and broaden its AI and autonomy offerings. In the context of potential Pentagon acquisition reforms, this kind of partnership could reinforce the growth narrative around resilient communications and advanced sensing capabilities, even as fixed price development work and program dependencies remain important watchpoints.

Yet while this all sounds constructive, investors still need to be aware of the risk that U.S. budget constraints in key areas like space could...

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 a roughly $1.0 billion earnings increase from $1.7 billion today.

Uncover how L3Harris Technologies' forecasts yield a $334.16 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community place L3Harris between US$334 and US$381 per share, underscoring how far opinions can stretch. You should weigh those views against the risk that fixed price development contracts and tighter U.S. budgets could pressure profitability, and consider how different scenarios might affect your own expectations for the business.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth as much as 37% more than the current price!

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 6 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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