L3Harris Technologies Inc. (LHX) shares advanced about 1% in morning trading on Wednesday, lifting the stock to $264.50. The defense contractor’s shares have declined roughly a quarter from their 52-week peak of $379.23 set in February, though they remain above the recent low of $258.54.
Jefferies initiated coverage of L3Harris on Monday with a hold rating and a price target of $315, implying a potential 20% gain from current levels. The firm’s initiation follows a leadership transition at the company after former CEO Christopher Kubasik was removed in August following a code-of-conduct violation. Sam Mehta was named as his replacement, a move that initially pressured shares by more than 4.5% in a single session.
The company reported a record backlog of $42 billion and raised its full-year 2026 revenue guidance to a range of $23 billion to $23.5 billion. L3Harris also posted a 28% increase in diluted earnings per share and 8% revenue growth in the second quarter. The missile solutions unit, now operating under the name Axyv, continues to face an unclear timeline for its planned initial public offering.
Defense sector peers Northrop Grumman, Lockheed Martin, and RTX traded mixed as the broader market showed limited movement, with the S&P 500 up 0.1% and the Dow Jones essentially flat.
