L3Harris Analyst Sees 'Turning Point' For Growth, Attractive Valuation Driving Outperformance
L3Harris Analyst Sees 'Turning Point' For Growth, Attractive Valuation Driving Outperformance
The analyst expects company sales to grow by 3% to 5% in 2025 and 5% in 2026, driven by strong performance in its core businesses, particularly in its Communication Systems, Space and Airborne Systems and Aerojet Rocketdyne divisions.L3Harris Technologies Inc. (NYSE:LHX) received a notable upgrade on Thursday from Wolfe Research analyst Myles Walton, who moved the stock from Peer Perform to Outperform and set a new price target of $300. The target suggests a potential upside of nearly 24%.
l3harris technologies公司（紐交所：LHX）週四收到了Wolfe Research分析師Myles Walton的重要升級，他將該股票從同業表現調升至表現優異，並設定了新的目標價格爲300美元。該目標價格暗示着將近24%的潛在上漲。
What To Know: The Wolfe Research analyst cited improving sales growth, margin expansion and free cash flow per share as key drivers for the optimism around L3Harris.
了解詳情：Wolfe Research分析師指出，銷售增長、利潤率擴張和每股自由現金流是圍繞l3harris公司的樂觀情緒的關鍵推動因素。
After lagging behind competitors over the past year, the aerospace and defense company is positioned for an upward shift in sales growth, with the potential to converge with industry peers Lockheed Martin Inc. (NYSE:LMT) and Northrop Grumman Inc. (NYSE:NOC) by 2025 or 2026, Walton said, calling it a "turning point" for L3Harris.
在過去一年落後於競爭對手之後，航空航天與國防公司定位爲銷售增長上升，有望在2025或2026年與行業同行洛克希德馬丁（紐交所：LMT）和諾斯羅普格魯曼（紐交所：NOC）趨同，沃爾頓稱之爲l3harris的「轉折點」。
The analyst expects company sales to grow by 3% to 5% in 2025 and 5% in 2026, driven by strong performance in its core businesses, particularly in its Communication Systems, Space and Airborne Systems and Aerojet Rocketdyne divisions.
分析師預計公司銷售額在2025年將增長3%至5%，2026年增長5%，這是由其核心業務實現強勁表現驅動的，特別是在其通信系統、空間與機載系統以及Rocketdyne航空動力部門。
Walton also noted that the company's margins are already 400 basis points higher than its peers. The analyst further pointed out that management raised its margin target to over 16% by 2026, citing ongoing cost-cutting initiatives, including a 5% workforce reduction and facility consolidation. Walton expects this margin growth to lead to robust free cash flow per share expansion in the mid-teens range in 2026.
沃頓還指出，該公司的利潤率已經比同行高出400個點子。分析師進一步指出，管理層將利潤率目標提高到2026年超過16%，並稱這是持續的成本削減舉措的一部分，包括5%的員工減少和設施合併。沃爾頓預計這種利潤率增長將在2026年使每股自由現金流擴張至中等區間。
As L3Harris' performance continues to improve, the valuation gap with larger defense companies is likely to narrow, the analyst said. His price target is based on a 15% valuation discount relative to the multiples of Lockheed Martin and Northrop Grumman. Lockheed has a price-to-earnings multiple of approximately 21 and Northrop's multiple is around 19.5. L3Harris is trading around 17 times forward earnings, according to data from Benzinga Pro.
隨着l3harris的業績持續改善，與更大的國防公司之間的估值差距可能會縮小，分析師表示。他的目標價格基於相對於洛克希德馬丁和諾斯羅普格魯曼的倍數的15%估值折扣。洛克希德的市盈率約爲21，諾斯羅普的市盈率約爲19.5。根據Benzinga Pro的數據，l3harris的未來盈利約爲17倍。
Despite the positive outlook, Walton acknowledged that there are risks. The company has trailed peers in growth and continues to deal with some uncertainties related to Aerojet Rocketdyne. However, the analyst believes these concerns are beginning to ease and L3Harris is positioned to address investor concerns moving forward through a renewed focus on growth and margin expansion.
儘管展望樂觀，沃爾頓承認存在風險。該公司在增長方面落後於同行，並繼續處理與Rocketdyne航空動力相關的一些不確定性。然而，分析師認爲這些擔憂開始減輕，l3harris定位爲通過重新關注增長和利潤率擴張來解決投資者關切。
LHX Price Action: L3Harris Technologies shares were down by 0.15% at $241.85 at the time of writing, according to Benzinga Pro.
l3harris technologies價格走勢：根據Benzinga Pro的數據，在撰寫時，l3harris technologies股價下跌0.15%，報241.85美元。
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Image via Wikimedia Commons.
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