UBS, RBC Capital Hike Price Targets on L3Harris Technologies, Inc. (LHX)

Core Insights - L3Harris Technologies, Inc. (NYSE:LHX) is recognized as one of the top 10 defense stocks to buy in the S&P 500, with recent price target increases from UBS and RBC Capital [1][2] Price Target Adjustments - UBS raised its price target for L3Harris from $323 to $349 while maintaining a Neutral rating [1] - RBC Capital increased its price target from $315 to $360 and reiterated a Sector Perform rating, highlighting a recent partnership with the Department of War (DoW) [2] Partnership and Investment - The partnership with the DoW involves a $1 billion convertible preferred security investment in L3Harris's rocket motor business, aligning with the DoW's 'Arsenal of Freedom' initiative [3] - This investment aims to ensure a stable supply of motors for missile programs and is part of a broader trend of U.S. government investments in corporate entities during President Trump's second term [3] Future Plans - L3Harris plans to conduct an IPO for its Missile Solutions business in the latter half of 2026, at which point the $1 billion security will convert to common equity [3] Recent Contracts - On January 14, L3Harris was awarded a multi-year contract by the U.S. Navy and Marines to deliver 34 T7 Robots, enhancing explosive ordnance disposal capabilities, with deliveries expected to start this year [4] Market Outlook - Wall Street has a positive outlook on L3Harris, with a consensus Strong Buy rating and a one-year average share price target of $361, indicating an upside potential of 4.20% as of January 19 [4]