L3Harris Technologies: Evaluating Valuation After Major Defense Contracts and VAMPIRE System Advancements

L3Harris Technologies (NYSE:LHX) has caught investors’ attention this week after winning major defense contracts, including a sizable deal with the U.S. Navy, and rolling out advanced updates to its VAMPIRE system.

See our latest analysis for L3Harris Technologies.

L3Harris Technologies has seen momentum build over the past several months, as substantial defense contracts and continued innovation, such as the upgraded VAMPIRE system, have reinforced its growth narrative. While recent 7-day share price returns are down, the stock’s robust year-to-date share price return of nearly 37% and a five-year total shareholder return approaching 83% show long-term investors have been well rewarded, despite short-term sentiment appearing lukewarm.

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With these achievements and analyst estimates suggesting up to 13% upside, investors might wonder whether L3Harris is trading at a discount after its strong run, or if the market is already factoring in future growth.

Most Popular Narrative: 8.2% Undervalued

With a recently updated fair value estimate of $309.11, roughly 8.2% above the last close, the most widely followed narrative paints L3Harris as attractively priced following recent growth signals and sector tailwinds.

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.

Read the complete narrative.

Want to know what bold projections power this verdict? The calculations hinge on a dramatic earnings surge, improving margins, and a future profit multiple that defies expectations. Unlock the full narrative to see which assumptions move the needle and how the story could shift with just one change in the numbers.

Result: Fair Value of $309.11 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained margin volatility or delays related to international demand could unsettle current optimism and have a negative impact on L3Harris’s near-term growth prospects.

Find out about the key risks to this L3Harris Technologies narrative.

Build Your Own L3Harris Technologies Narrative

If you’d rather chart your own course or feel the story might look different with your assumptions, take just a few minutes to craft your personal view, then Do it your way.

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.

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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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