L3Harris Technologies (LHX) plans to invest $400 million in a new rocket motor site in Camden, Arkansas. The project will sit on 110 acres and include more than 20 buildings. The new site will lift the output of large solid rocket motors by sixfold, which is a key need for many U.S. programs.
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Meanwhile, LHX shares dropped slightly on Tuesday, closing at $285.44. Overall, the stock is up over 35% year-to-date.
A Push to Meet Rising Demand
The move comes as global conflict lifts demand for long-range gear. The fight in Ukraine and unrest in the Middle East have raised orders for missiles and air defense tools. As a result, many major firms face long wait times for the motors that power these units.
L3Harris gained a core spot in this part of the field after it bought Aerojet Rocketdyne for $4.7 billion two years ago. Since then, the firm has used its Camden site to build more than 115,000 small solid rocket motors each year. Now the new site will help the firm add medium and large motors used in missiles and new high-speed gears.
Furthermore, the plan aligns with a broad U.S. effort to build a new home guard shield called the Golden Dome. The shield will need more motors to meet test phases and future orders.
A Wider Lift In United States Supply
The Arkansas plan is part of more than $500 million in new spending across sites in Arkansas, Virginia, and Alabama. These steps aim to fix long-term strain in the U.S. rocket motor field, which has held back some top weapons lines across large contractors like Lockheed Martin (LMT) and RTX (RTX).
As a result, Camden will grow from a longtime plant for small motors into a large hub for a wider U.S. rocket motor supply. The move also helps the country cut risk tied to a field with few major firms.
Also in focus are companies’ ESG metrics. Investors who use ESG screens now treat some defense work as core for long-term safety needs. While some funds still leave out defense firms, other groups view a stable supply of key gear as part of broad social strength. As a result, this type of plan can gain more support from funds that once kept clear of the field. Overall, the new site reflects a clear shift in the U.S.’s focus toward a stable supply of missile parts. It also gives L3Harris a larger spot in a field that will shape many major orders in the years ahead.
Is LHX a Good Stock to Buy?
Turning to the Street, L3Harris Technologies boasts a Moderate Buy consensus rating. The average LHX stock price target stands at $332.83, suggesting a 16.60% upside from the current price.
