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Assessing L3Harris Technologies (LHX) Valuation After A Strong Run In Recent Months

Simply Wall St · 2d ago

Recent performance snapshot for L3Harris Technologies (LHX)

L3Harris Technologies (LHX) has drawn attention after a period of solid stock performance, with the share price closing at $311.38 and recording positive returns over the past week, month, past 3 months, year and longer horizons.

See our latest analysis for L3Harris Technologies.

For context, L3Harris Technologies’ recent strength has come on top of a 56.33% total shareholder return over the past year. The 5.38% 7 day and 11.81% 30 day share price returns suggest momentum is currently building rather than fading.

If L3Harris has you looking closer at defense names, this can be a useful moment to scan aerospace and defense stocks for other companies showing similar strength or differentiated risk profiles.

With the stock at $311.38, an intrinsic discount of about 19% and a price target gap of roughly 8%, the key question is whether L3Harris is still undervalued or whether the market is already pricing in future growth.

Most Popular Narrative: 7.1% Undervalued

With L3Harris closing at $311.38 against a narrative fair value of about $335.15, the current price sits below what the narrative assumes, putting the focus squarely on the earnings path that underpins that gap.

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 most bullish reporting a price target of $327.0, and the most bearish reporting a price target of just $250.0.

Read the complete narrative.

Want to see what is driving that higher fair value than today’s price? The whole story hinges on steady revenue expansion, rising margins and a future earnings multiple that assumes L3Harris keeps converting defense demand into profits. The key details sit in the assumptions behind those earnings and the 8.0% discount rate, and they are more specific than a simple “defense up” story.

Result: Fair Value of $335.15 (UNDERVALUED)

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

However, there are still clear risks, including potential U.S. budget constraints and the higher execution risk tied to complex, fixed-price defense and space contracts.

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

Build Your Own L3Harris Technologies Narrative

If parts of this narrative do not quite fit your view, you can walk through the same data, test your own assumptions and Do it your way in just a few minutes.

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?

If L3Harris has sharpened your interest, do not stop here. Widen your watchlist with a few more focused ideas sourced directly from the Simply Wall St screener.

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.