JPMorgan maintains L3Harris stock Overweight with $255 target

On Wednesday, JPMorgan reiterated its Overweight rating and $255.00 price target for L3Harris Technologies (NYSE:LHX), following a government briefing that highlighted the defense contractor’s involvement in a significant defense program known as Golden Dome. With a current market capitalization of $43.15 billion and trading at $230.82, InvestingPro analysis shows the stock has gained over 10% year-to-date. The briefing, which included Indiana Senator Jim Banks, acknowledged L3Harris’s contributions, particularly in relation to its space manufacturing facility in Fort Wayne, Indiana.

L3Harris Technologies recently completed a $125 million expansion at the Fort Wayne facility, which has been instrumental in the company securing contracts for various defense initiatives. The company, which generates annual revenue of $21.25 billion, has maintained dividend payments for 55 consecutive years - one of several key metrics available on InvestingPro. This includes participation in the first three tranches of the Space Development Agency’s (SDA) tracking layer satellites and the Missile Defense Agency’s Hypersonic and Ballistic Tracking Space Sensor (HBTSS) program.

The Golden Dome program, which encompasses a wide range of defense components, is expected to allocate substantial resources to different contractors. While L3Harris has secured its position within certain aspects of the program, other major defense companies like Northrop Grumman (NYSE:NOC) and Lockheed Martin (NYSE:LMT) are also anticipated to play significant roles. Raytheon (NYSE:RTN) was specifically mentioned for delivering its first missile defense radar equipped with a full Gallium Nitride (GaN)-based array.

The briefing also suggested that the program would extend opportunities to non-traditional and smaller companies, with the president noting the potential contributions from Silicon Valley. Although not mentioned in the briefing, a previous report by Reuters earlier this year indicated that a team comprising SpaceX, Palantir (NASDAQ:PLTR), and Anduril Industries could be significantly involved in the Golden Dome initiative.

The Department of Defense was scheduled to host an industry event for Golden Dome in late April in Huntsville, Alabama. However, this event has now been postponed to June 11, 2025. As the defense sector anticipates this upcoming event, L3Harris Technologies is positioned to benefit from its established role in these defense projects. InvestingPro subscribers can access detailed analysis of L3Harris’s financial health, including comprehensive valuation metrics and 10 additional ProTips that provide deeper insights into the company’s performance and outlook.

In other recent news, L3Harris Technologies reported its financial results for the first quarter of 2025, surpassing earnings expectations with an earnings per share (EPS) of $2.41, higher than the projected $2.32. However, the company fell short on revenue forecasts, posting $5.13 billion against the expected $5.22 billion. Despite this, Bernstein SocGen raised its price target for L3Harris to $273, maintaining an Outperform rating, indicating confidence in the company’s fundamentals despite some financial impacts from the CAS divestiture. Additionally, L3Harris secured $214 million in orders from Germany for interoperable communication systems, which are part of Germany’s Digitalization – Land Based Operations program, highlighting the company’s strong international presence. The company also emphasized its ongoing strategic initiatives targeting $1.2 billion in savings and its commitment to returning value to shareholders, having returned nearly $800 million through share repurchases and dividends. L3Harris reaffirmed its revenue guidance for 2025, projecting between $21.4 billion and $21.7 billion, with expectations of 4% organic growth. The company continues to position itself as a leader in defense technology, focusing on innovations and strategic partnerships.

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