Sheila Kahyaoglu, an analyst from Jefferies, maintained the Buy rating on L3Harris Technologies (LHX – Research Report). The associated price target remains the same with $260.00.
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Sheila Kahyaoglu’s rating is based on several positive indicators for L3Harris Technologies. A significant factor is the company’s robust backlog growth, which increased by 5% year-over-year to $34.2 billion, indicating strong future revenue streams. The expectation to recognize 45% of this backlog by the end of 2025 further supports revenue stability and growth expectations.
Additionally, while international sales as a percentage of total revenue slightly declined, the total international sales volume grew by 6%, reflecting expanding global market penetration. Furthermore, the company has shown improved efficiency by increasing sales per employee by 17%, despite a reduction in headcount due to strategic divestitures and rightsizing efforts. This operational efficiency, coupled with disciplined financial management, such as deploying 80% of adjusted free cash flow towards dividends and share buybacks, reinforces the company’s financial health and shareholder value proposition.
In another report released on February 11, Citi also maintained a Buy rating on the stock with a $285.00 price target.