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    A Look at L3Harris Technologies’ Valuation After Its Largest Recent GMLRS Propulsion Contract Win

    Simply Wall St·12/12/2025 02:27:54
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    L3Harris Technologies (LHX) just landed a follow on GMLRS propulsion contract worth up to $200 million, and the real story is how this order leans on its new, higher-capacity Camden facility.

    See our latest analysis for L3Harris Technologies.

    The contract follows a strong run, with L3Harris delivering a roughly 40% year to date share price return and a solid multi year total shareholder return, signaling momentum that investors increasingly link to its expanding defense backlog and upgraded capacity.

    If this kind of contract win has your attention, it could be worth exploring other aerospace and defense stocks that might benefit as defense spending and missile demand stay elevated.

    With shares up sharply this year, trading below analyst targets and carrying a lower P/E than many defense peers, is L3Harris still an overlooked value, or are investors already paying up for the next leg of growth?

    Most Popular Narrative Narrative: 13.3% Undervalued

    With L3Harris closing at $289.86 against a narrative fair value near $334, the current price reflects only part of the expected earnings ramp.

    The analysts have a consensus price target of $299.737 for L3Harris Technologies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the more bullish reporting a price target of $327.0, and the more bearish reporting a price target of just $250.0.

    Read the complete narrative.

    Curious what kind of revenue trajectory, margin lift and future earnings multiple are needed to support that higher intrinsic value, and how a sub 8% discount rate ties it all together? The narrative pulls those threads into one bold valuation story that the headline numbers alone do not explain.

    Result: Fair Value of $334.16 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, that upside depends on smooth execution. Fixed price defense programs or shifting U.S. and allied budgets could quickly undermine the earnings ramp.

    Find out about the key risks to this L3Harris Technologies narrative.

    Build Your Own L3Harris Technologies Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a custom narrative in just a few minutes using Do it your way.

    A great starting point for your L3Harris Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

    Before you move on, lock in fresh opportunities by scanning focused stock lists built from hard data, not hype, so your next move is intentional, not reactive.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.