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Investing.com - RBC Capital has raised its price target on L3Harris Technologies (NYSE:LHX) to $280.00 from $265.00 while maintaining a Sector Perform rating on the defense contractor’s stock. The company, currently valued at $50.38 billion, is trading below its InvestingPro Fair Value, suggesting potential upside opportunity.
The adjustment follows L3Harris’s strong second-quarter 2025 results, which included adjusted earnings per share of $2.78 and 6% organic growth. The company posted a book-to-bill ratio of 1.5x for the quarter. With a YTD return of 29.4% and a PEG ratio of 0.69, InvestingPro data shows the stock trading at attractive valuations relative to its growth prospects.
In response to these results, L3Harris has raised its guidance for 2025 and slightly increased its targets for 2026. Management expressed confidence in the company’s ability to benefit from emerging Department of Defense programs, specifically mentioning Golden Dome, and new priorities.
RBC Capital noted that L3Harris is ahead of its LHNext cost plan, with execution showing continued improvement. The analyst firm indicated it was encouraged by the improved outlook for the second half of 2025 and for 2026.
Despite the positive developments, RBC maintained its Sector Perform rating, suggesting that much of the near-term upside is already reflected in the current valuation of L3Harris stock.
In other recent news, L3Harris Technologies reported its financial results for the second quarter of 2025, exceeding market expectations. The company announced earnings per share (EPS) of $2.78, which was higher than the projected $2.48. Additionally, L3Harris achieved revenue of $5.4 billion, surpassing the anticipated $5.32 billion. These results have been well-received, highlighting the company’s strong performance for the quarter. There were no reports of mergers or acquisitions involving L3Harris during this period. Analyst firms have not publicly upgraded or downgraded L3Harris in light of these recent earnings. The company’s latest developments reflect a positive trajectory in its financial health.
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