Why This L3Harris Technologies Analyst Is Turning Bullish


Shares of L3Harris Technologies Inc LHX have been on a downward trajectory over the past six months.

The company is poised to benefit from geopolitics driving the Defense sector in 2023, according to Morgan Stanley.

The L3Harris Technologies Analyst: Kristine Liwag upgraded the rating for L3Harris Technologies from Equal-Weight to Overweight, while raising the price target from $263 to $278.

The L3Harris Technologies Thesis: The stock is currently trading at a 20% discount to peers, and replaces Lockheed Martin Corp LMT as “the new tactical value play” entering the new year, Liwag said in the upgrade note.

Check out other analyst stock ratings.

“We expect 2023 will continue to be driven by geopolitical risk perceptions as the most significant growth from recent higher defense spending commitments do not begin to materialize until the 2024-2025 timeframe,” the analyst wrote.

“With Defense trading at a ~5% premium to the S&P 500 on a NTM P/FCF basis, we think the market has yet to price in the full extent of geopolitical realities and the Pentagon’s accelerated focus on strategic competition, driving our bullish industry view entering 2023,” he added.

LHX Action: Shares of L3Harris Technologies are down 1.70% to $214.49 at the time of publication Thursday.

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Photo: Jason Sponseller via Shutterstock

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Posted In: Analyst ColorUpgradesPrice TargetTop StoriesAnalyst RatingsaerospacedefenseKristin LiwagmilitaryMorgan Stanley
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