L3Harris Technologies (LHX) After The $6b THAAD Win Looks Mispriced

L3Harris Technologies (LHX) is back in focus after securing an undefinitized contract from Lockheed Martin worth more than US$6b over seven years to ramp up THAAD propulsion production.

The new THAAD award lands at a time when L3Harris Technologies’ share price has slid about 7.7% over the past month and roughly 22.3% year to date, even though the 3-year total shareholder return of about 52.9% still reflects a much stronger long-run outcome.

Scan how this THAAD contract reshapes the defense space and see which other missile and aerospace contractors screen as potential opportunities across our curated 40 power grid technology and infrastructure stocks

L3Harris Technologies has dropped sharply while analyst and intrinsic value estimates still sit far higher. The gap between a US$236.60 price and those fair value marks is now wide enough to measure carefully.

Most Popular Narrative: 30.9% Undervalued

The most followed narrative now anchors L3Harris Technologies at a fair value of about $342 per share, well above the recent $236.60 close. This frames the current weakness against a much richer long term earnings profile. That gap leans heavily on how missiles, space programs and international demand are expected to translate into future cash flows when discounted at 8.4%.

The U.S. defense budget is expected to grow, with new defense initiatives and a potential increase in funding that could benefit L3Harris Technologies, supporting revenue growth. L3Harris Technologies is well positioned in several key growth areas, such as missile warning and tracking, and recent contract awards for missile tracking satellites and a larger space pipeline extend this opportunity for future revenue and earnings.

See why 94 investors see L3Harris Technologies as 31% undervalued.

Result: Fair Value of $342.36 (UNDERVALUED)

Still, two pressure points could upend the bullish view on L3Harris Technologies: tighter U.S. space budgets and prolonged supply chain bottlenecks that restrain missile and radio deliveries.

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

Next Steps

Mixed about the tone of this L3Harris Technologies story so far? Move quickly, review both sides of the data, and weigh up the 6 key rewards and 1 important warning sign

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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.

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