Is the NTS-3 Satellite Launch Shaping the Investment Case for L3Harris Technologies (LHX)?

• L3Harris Technologies recently celebrated the successful launch of its advanced Navigation Technology Satellite-3 (NTS-3) from Cape Canaveral Space Force Station aboard a United Launch Alliance Vulcan rocket.
• NTS-3 is the Department of Defense’s first experimental navigation satellite system in nearly 50 years and introduces fully reprogrammable Positioning, Navigation and Timing capabilities, highlighting L3Harris’s progress in space technology and defense innovation.
• Next, we’ll examine how delivering the first fully reprogrammable military PNT satellite could influence L3Harris Technologies’ broader investment outlook.

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L3Harris Technologies Investment Narrative Recap

For me to feel confident as a shareholder in L3Harris Technologies, I’d need to believe in the company's ongoing commitment to innovation and its ability to convert emerging defense technology wins into steady financial performance. The successful launch of the NTS-3 satellite highlights L3Harris’s engineering capability and speed of delivery, but does not materially shift the most important short-term catalyst for the company: sustained contract momentum in growing strategic defense segments. The main business risk remains L3Harris’s exposure to fixed-price contracts, which continue to present potential margin constraints despite recent project victories.

Of the recent announcements, L3Harris’s raised 2025 revenue guidance is especially relevant. This revision reflects the company’s confidence in the ongoing ramp in production and deliveries, as well as its near-term ability to benefit from high-value program execution, illustrated by projects like NTS-3. Execution on new and existing contract wins will be crucial to ensuring that top-line growth translates into consistent profitability.

However, even with new milestones achieved, investors should be aware of the complexity and heightened exposure to cost overruns that accompany fixed-price development contracts...

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

L3Harris Technologies' outlook anticipates $24.9 billion in revenue and $2.7 billion in earnings by 2028. This is based on analysts’ expectations for 5.2% annual revenue growth and a $1.0 billion increase in earnings from the current $1.7 billion.

Uncover how L3Harris Technologies' forecasts yield a $299.95 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Two community fair value estimates for L3Harris Technologies range from US$299.95 to US$332.62, reflecting a broad spectrum of retail investor analysis in the Simply Wall St Community. Many also remain focused on whether fixed-price contract risks could alter the company’s ability to sustain improved profit margins.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth as much as 22% 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 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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