L3Harris Technologies' Price Target Raised to $286 by Bernstein

L3Harris Technologies' price target has been raised to $286 from $273 by Bernstein, citing more positive budget trends. The firm maintains an Outperform rating on the shares and sees Q2 reporting as potentially marking an inflection in defense stock performance.

L3Harris Technologies' stock price has received a boost with Bernstein raising its price target to $286 from $273, citing more positive budget trends in the defense sector. The firm maintains an Outperform rating on the shares, expecting Q2 reporting to potentially mark an inflection in defense stock performance [1].

L3Harris Technologies, represented by the ticker symbol LHX, benefits from a strong position in the U.S. defense market and a global reach. The company's planned acquisitions have significantly contributed to its overall growth, making it a promising investment opportunity in the Zacks Aerospace-Defense industry [1].

The Zacks Consensus Estimate for LHX’s 2025 earnings per share (EPS) has increased by 0.1% to $10.48 per share over the past 60 days, and the company's long-term earnings growth rate is projected to be 12%. LHX has consistently surpassed earnings expectations, delivering an average earnings surprise of 2.27% over the last four quarters [1].

L3Harris has been increasing shareholders' value through regular dividend payments, with a current quarterly dividend of $1.20 per share, resulting in an annualized dividend of $4.80. The company's current dividend yield is 1.85%, outperforming the industry average of 1.16% [1].

The company maintains a strong foothold in the U.S. defense space and a significant global presence, with international revenues contributing around 22.5% to its total revenues. L3Harris continues to drive growth through strategic acquisitions, such as the integration of Aerojet Rocketdyne and Tactical Data Links, which are expected to generate positive synergies [1].

L3Harris' return on equity (ROE) stands at 12.38%, higher than the industry average of 10.73%, indicating efficient utilization of shareholders' funds. The company's total debt to capital ratio is 37.98%, significantly lower than the industry average of 52.08%, and the times interest earned ratio (TIE) of 3.7 reflects the company's ability to meet future interest obligations without difficulties [1].

In the past month, L3Harris stock has rallied by 3.9% compared to the industry's growth of 3.6%. Other top-ranked stocks in the sector include GE Aerospace (GE), Woodward, Inc. (WWD), and Curtiss-Wright Corp. (CW), each carrying a Zacks Rank #2 [1].

The positive outlook from Bernstein, combined with L3Harris' strong fundamentals and growth prospects, makes the stock an attractive investment opportunity for investors in the defense sector.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/LHX/pressreleases/33350163/heres-why-l3harris-stock-looks-promising-for-your-portfolio-now/