L3Harris Technologies (LHX): Valuation Insights Following $2.26 Billion Korea Defense Aircraft Deal

L3Harris Technologies (LHX) has landed a $2.26 billion contract to deliver modified Bombardier Global 6500 airborne early warning and control aircraft to the Republic of Korea Air Force. By collaborating with Bombardier, Israel Aerospace Industries, and Korean Air, this agreement reinforces L3Harris’ role in advanced military communications and surveillance.

See our latest analysis for L3Harris Technologies.

The Korea contract comes shortly after several major wins for L3Harris Technologies, including a nearly $940 million U.S. defense deal and continued recognition for dividend growth potential. As a result, momentum has picked up in 2025, with the share price up 41.4% year-to-date and a total shareholder return of 18.3% over the past year, reflecting renewed optimism about growth in aerospace and defense.

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With L3Harris trading at a 10% discount to analyst price targets and recent gains already reflected in its share price, investors are left wondering whether there is more room to run or if the market has priced in future growth.

Most Popular Narrative: 9.3% Undervalued

L3Harris Technologies’ last close of $293.20 is below the most popular narrative’s fair value estimate of $323, creating clear interest in the company’s valuation story, especially given recent defense sector tailwinds.

L3Harris is well positioned in several key growth areas, such as missile warning and tracking, due to recent investments and capability alignment. This may increase future revenue. International demand, especially from NATO allies for advanced communication solutions, is expected to remain strong, supporting revenue growth.

Read the complete narrative.

Want to know what is fueling this optimistic price target? Consider ambitious growth in critical areas and projected profit margins usually reserved for industry leaders. Discover the projections that tip the scales in the narrative’s favor.

Result: Fair Value of $323 (UNDERVALUED)

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

However, ongoing reliance on external contractors and possible U.S. budget constraints could challenge L3Harris’s growth story if projects encounter disruption or delays.

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

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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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