A Deal With the Pentagon and Planned Spin-Off Has This Defense Stock at Record Highs

Core Insights - L3Harris (LHX) shares are experiencing a rise, reaching new highs due to support from the U.S. government [1] - The U.S. government will invest $1 billion in L3Harris' missile solutions business, which will convert to equity upon its public market debut [2] - L3Harris plans to spin off its missile solutions division into a separate public company in the second half of this year [5] Financial Impact - Shares of L3Harris increased by approximately 3% to $350, positioning them to surpass the previous record close [1] - The investment from the U.S. government is seen as a positive signal for L3Harris' missile solutions division, which is a significant revenue source for the company [3] - L3Harris has invested significantly in enhancing the production capacity of its missile solutions division since acquiring Aerojet Rocketdyne [4] Market Context - The missile solutions segment includes the production of solid rocket boosters for weapons like the Tomahawk missile program [4] - L3Harris shares have surged nearly 20% in January, reflecting a broader rally in defense stocks following calls for increased military spending [5]