Core Viewpoint - BNP Paribas Exane initiates coverage on 12 U.S. aerospace and defense companies, suggesting selective investment due to pressures in commercial aviation and anticipated growth in defense spending by 2026 [1] Commercial Aviation - The firm prefers parts and subsystem suppliers over large OEMs, favoring companies like Raytheon (RTX.US), TransDigm (TDG.US), and AeroVironment (AVAV.US) with positive ratings, while giving a negative outlook on Boeing (BA.US) and GE Aerospace (GE.US) [1][3][4][5] Defense Sector - Exane expects U.S. budget decisions in 2026 to drive demand, listing Lockheed Martin (LMT.US), Northrop Grumman (NOC.US), and AeroVironment (AVAV.US) as preferred picks [1] Company Ratings - **AeroVironment (AVAV.US)**: Outperform, positioned at the core of U.S. defense priorities with expected double-digit growth in its AxS segment [1] - **TransDigm (TDG.US)**: Outperform, with anticipated profit margin improvements in 2026 and 2027, and a projected special dividend of $100 next year [2][3] - **Raytheon (RTX.US)**: Outperform, expecting improved output from Collins Aerospace and growth in Pratt & Whitney [4] - **GE Aerospace (GE.US)**: Underperform, with concerns over declining aftermarket revenue and increasing losses in the GE9X project [5] - **L3Harris Technologies (LHX.US)**: Neutral, with limited room for valuation expansion despite benefits from missile defense projects [6] - **Boeing (BA.US)**: Underperform, with overly optimistic expectations on aircraft production and cash flow [7] - **Lockheed Martin (LMT.US)**: Outperform, driven by missile projects and international demand [8] - **Kratos Defense (KTOS.US)**: Neutral, with high valuation concerns despite broad defense technology coverage [9] - **General Dynamics (GD.US)**: Outperform, with expected improvements in various sectors including Gulfstream jets and shipbuilding [10] - **Northrop Grumman (NOC.US)**: Outperform, with anticipated growth in multiple projects as they transition to procurement phases [11] - **Howmet Aerospace (HWM.US)**: Outperform, with strong performance in pricing and market share [12] - **Heico (HEI.US)**: Neutral, with cautious outlook due to high valuation and potential slowdown in acquisitions [13]

With a market cap of $53.4 billion, L3Harris Technologies, Inc. (LHX) is a leading global provider of mission-critical solutions for government and commercial customers, operating across four segments: Space & Airborne Systems, Integrated Mission Systems, Communication Systems, and Aerojet Rocketdyne. The company delivers advanced technologies ranging from satellite payloads and ISR systems to tactical radios and space propulsion. Shares of the Melbourne, Florida-based company have outpaced the broader ma ...

Core Insights - L3Harris Technologies announced a $400 million investment in a new solid rocket motor production campus in Arkansas, representing one of the largest expansions in the U.S. defense sector [1] Company Summary - The investment by L3Harris Technologies is aimed at enhancing its production capabilities in the solid rocket motor segment, which is critical for defense applications [1] - This expansion is expected to create numerous jobs and contribute to the local economy in Arkansas [1] Industry Summary - The solid rocket motor market is experiencing significant growth, driven by increasing defense budgets and demand for advanced military technologies [1] - The investment reflects a broader trend of defense suppliers expanding their manufacturing capabilities to meet rising demand [1]

Core Insights - Marotta Controls has been awarded a contract by L3Harris Technologies to design, develop, qualify, and deliver production flight actuator hardware for an advanced thrust vector control (TVC) system, marking a significant milestone for the company in the TVC market [1][2][3] Company Developments - The contract includes the design, development, and delivery of multiple engineering units and qualification assets, as well as the production of TVC hardware for a medium-range ballistic missile target program for the Missile Defense Agency [2] - This contract represents Marotta's first collaboration with L3Harris outside of aerospace valve solutions, indicating a diversification of capabilities and potential support for additional missile platforms and defense applications in the future [4] Technological Advancements - Marotta's TVC system enhances missile navigation and precision through advanced control by gimbaling the rocket motor's nozzle, allowing for precise trajectory adjustments in extreme environments [3] - The actuator-driven design of the TVC system is expected to leverage Marotta's extensive experience in actuation technology and understanding of aerospace and defense mission requirements [3]

Core Viewpoint - Bernstein has raised the target price for L3Harris Technologies from $324 to $369 while maintaining a "Buy" rating [1] Group 1 - The target price adjustment reflects a positive outlook on L3Harris Technologies' performance [1] - The "Buy" rating indicates confidence in the company's growth potential and market position [1]

Group 1 - L3Harris Technologies, Inc. (LHX) has experienced a 33.3% increase since the last report, surpassing the S&P 500's 22% return [2] - The company is benefiting from strong demand for defense products and services, indicating a positive market trend in the aerospace and defense sector [2] - The analysis is provided by an expert with a background in aerospace engineering, focusing on investment opportunities within the aerospace, defense, and airline industries [2] Group 2 - The investing group, The Aerospace Forum, aims to identify investment opportunities in the aerospace, defense, and airline sectors, utilizing data-informed analysis [2] - The group offers access to data analytics monitors, enhancing the investment research process [2]

Core Insights - L3Harris Technologies (LHX) has experienced a significant increase of 33.3% since the last report, surpassing the S&P 500's return of 22% [2] Company Performance - The strong performance of L3Harris is attributed to robust demand for defense products and services [2] Analyst Background - The analysis is provided by an aerospace, defense, and airline analyst with a background in aerospace engineering, focusing on identifying investment opportunities within the aerospace and defense sectors [2]

Core Insights - L3Harris (LHX) is recognized for its defensive qualities, which are expected to manifest in the near future [1] - The company has actively engaged in mergers and acquisitions (M&A) over the past decade to enhance its market position [1] Group 1 - L3Harris has been aggressive in pursuing M&A opportunities to strengthen its business strategy [1] - The investment group "Value In Corporate Events" focuses on identifying actionable investment opportunities related to major corporate events such as IPOs and earnings reports [1]

Core Insights - The company emphasizes the urgency for change in the defense ecosystem, aligning with Secretary Hegseth's vision for agility and accountability [1] - L3Harris positions itself as a Trusted Disruptor, advocating for acquisition reform recommendations to the Department of Defense (DOGE) [1] - The company has a long-standing commitment to investing in commercial products and business models, focusing on open architecture and rapid deployment of innovative technologies [1] Company Strategy - L3Harris has embraced commercial products and business models for decades, indicating a strategic shift towards more flexible and innovative solutions [1] - The company is scaling production capabilities to meet the demands of a changing defense landscape [1] - There is a commitment to rapidly fielding new technologies, showcasing the company's focus on agility and responsiveness in defense [1]

Core Insights - Diamond Hill Capital's "Large Cap Fund" underperformed the Russell 1000 Value Index in Q3 2025 despite the Russell 3000 Index gaining 8% year-to-date, with calendar-year returns exceeding 14% [1] Company Summary: L3Harris Technologies, Inc. (NYSE:LHX) - L3Harris Technologies, Inc. is a global provider of mission-critical solutions for government and commercial customers, with a market capitalization of $53.716 billion and a share price of $287.11 as of November 5, 2025 [2] - The company experienced a one-month return of -3.86% but a 12.52% increase in share value over the last 52 weeks [2] - L3Harris is benefiting from strong demand from the US government and allies in areas such as small satellites, secure communications, and rocket motors, contributing to higher earnings growth [3] - Cost-cutting measures and improved execution at Aerojet Rocketdyne, acquired two years ago, are positively impacting the company's performance [3] - In Q3 2025, L3Harris reported revenue of $5.7 billion, reflecting a strong organic growth of 10% [4] - The number of hedge funds holding L3Harris increased from 42 to 53 in the second quarter of 2025, indicating growing interest [4]