Bernstein upgrades L3Harris to outperform on valuation

Investing.com -- Bernstein upgraded L3Harris Technologies Inc (NYSE:LHX ) to "outperform" from "market perform" citing valuation opportunities following a sharp pullback in defence stocks post-election. But the price target was cut to $267 from $289.

“We expect Trump to still support strong capabilities, as he did in his first term, even though there remains uncertainty on budget limits,” analyst said.

The firm highlighted L3Harris’s advantage over peers like Lockheed Martin (NYSE:LMT ) and Northrop Grumman (NYSE:NOC ), with less exposure to F-35 program risks and shipbuilding challenges.

LHX's focus on fixed-price contracts, missile demand, and space capabilities positions it well under a potential Trump administration prioritizing defence export.

While Bernstein noted margin challenges remain, improved execution, positive backlog growth, and software sales momentum strengthen the outlook.

Source: Investing.com