Is L3Harris (LHX) Stock a Buy After Landing a Major Seven-Year Missile Contract?

TLDR

• L3Harris signed a seven-year framework agreement with the Department of War and Lockheed Martin for PAC-3 MSE propulsion system production
• The deal will allow L3Harris to nearly triple production of PAC-3 propulsion products
• LHX stock opened at $300.08, trading below its 200-day moving average of $328.70
• Q1 earnings came in at $2.72 EPS, beating estimates of $2.53, with revenue up 11.9% year-over-year to $5.74 billion
• Analyst consensus sits at “Moderate Buy” with an average price target of $361.70

L3Harris Technologies landed a major defense deal on Monday, signing a seven-year framework agreement with the Department of War and Lockheed Martin for long-term production of PAC-3 Missile Segment Enhancement propulsion systems.

LHX stock opened at $300.08, up 1.60% on the day, though still trading well below its 200-day moving average of $328.70.

L3Harris Technologies, Inc., LHX

The contract covers three key components of the PAC-3 MSE interceptor: the two-pulse solid rocket motor, Attitude Control Motors, and the Lethality Enhancer. The latter is an explosive device designed to increase the kill radius of the ground-based PAC-3 against threats including cruise missiles.

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