Key insights
- Despite some price target cuts, Wall Street analysts maintain a bullish outlook on L3Harris Technologies (LHX), with a 'Strong Buy' rating and significant upside potential cited. The company beat Q1 earnings and revenue expectations and raised full-year EPS guidance, driven by strong US government demand for defense systems. While some analysts express concerns about long-term budget uncertainty, the overall sentiment remains positive, suggesting potential for continued stock performance in the defense sector.
L3Harris Technologies, Inc. (NYSE:LHX) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. As of the close of business on May 8, the stock is a Strong Buy with an average share-price upside potential of 30%.
This is despite recent price target reductions following first-quarter financial results. On May 4, Bernstein analyst Douglas Harned slashed the stock’s price target to $405 from $435, citing budget uncertainty for 2027.
The firm said it was waiting for contracts for missile growth plans to be signed. However, Bernstein reiterated its Outperform rating on L3Harris Technologies, Inc. (NYSE:LHX) after beating revenue and earnings estimates for Q1.
Earlier on May 1, UBS also lowered its price target on the stock to $330 from $362, while maintaining a Neutral rating.
The defense contractor reported a total revenue of $5.74 billion, against forecasts of $5.42 billion. Diluted EPS came in at $2.72, up 33% year-over-year and beating expectations by 19 cents. The company lifted its EPS guidance for the full year, banking on robust demand from the U.S. government for its weapons and defense systems.
L3Harris Technologies, Inc. (NYSE: LHX) provides advanced national security solutions across the air, land, space, sea, and cyber domains. It operates through four segments: Communication Systems, Integrated Mission Systems, Space & Airborne Systems, and Aerojet Rocketdyne.
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