L3Harris Technologies, Inc. (LHX) Wins $843M Contract For Missile Tracking Satellites

Core Viewpoint - L3Harris Technologies, Inc. has secured a significant $843 million contract for developing missile tracking satellites, indicating strong growth potential in the defense sector [1][2][3]. Group 1: Contract Details - The contract involves the development of 18 infrared satellites for the Tranche 3 (T3) Tracking Layer, which will include ground assistance, sustainment, and operational functions [2]. - This new contract adds to previous orders for 34 satellites in development for Tranche 1 (T1) and Tranche 2 (T2) [2]. Group 2: Strategic Importance - The satellites will be part of the Space Development Agency's Proliferated Warfighter Space Architecture (PWSA) constellation, aimed at defending the U.S. from hypersonic and ballistic missile threats [3]. - The CEO of L3Harris emphasized the importance of these satellites in advancing tracking and targeting capabilities necessary for national defense [3]. Group 3: Market Outlook - Morgan Stanley upgraded L3Harris's rating to Overweight from Equal Weight and increased the price target from $350 to $367, citing potential catalysts such as the Golden Dome project in 2026 [3]. - As of December 22, analysts have a Moderate Buy rating on the stock, with a one-year average price target of $334, indicating a potential upside of 13% [4]. Group 4: Company Overview - L3Harris Technologies provides comprehensive technology solutions that connect various domains including air, land, space, sea, and cyber for national security [4].