Goldman Sachs has raised its rating for L3Harris Technologies (LHX, Financial) to a "Buy" from a previous "Sell" recommendation. The financial services giant has also increased its price target for the stock to $263, a significant jump from the earlier target of $198.
The upgrade reflects Goldman Sachs' positive outlook on L3Harris’ ability to adapt to the evolving needs of the Department of Defense. According to the analysts, L3Harris operates with a flexible business model that can effectively respond to shifts in defense demands, making it well-positioned within the industry.
L3Harris is regarded as "program agnostic," meaning it isn't tied to specific defense programs but instead offers a diverse range of products that align with growth areas in the defense budget. This strategic alignment is expected to help the company outperform its peers and maintain strong profit margins.
The firm also noted that L3Harris’ stock valuation appears attractive compared to its industry counterparts. Overall, the upgraded outlook underscores Goldman Sachs' confidence in L3Harris’ potential for growth and robust financial performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for L3Harris Technologies Inc (LHX, Financial) is $249.20 with a high estimate of $275.00 and a low estimate of $198.00. The average target implies an upside of 16.71% from the current price of $213.51. More detailed estimate data can be found on the L3Harris Technologies Inc (LHX) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, L3Harris Technologies Inc's (LHX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for L3Harris Technologies Inc (LHX, Financial) in one year is $252.73, suggesting a upside of 18.37% from the current price of $213.51. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the L3Harris Technologies Inc (LHX) Summary page.
