L3Harris Technologies Inc. shares advanced about 1% in early trading on Wednesday, lifting the stock to roughly $264.50 after Jefferies initiated coverage with a $315 price target, representing a potential 20% gain from recent levels.
The upgrade follows a period of volatility for the defense contractor, which saw its shares drop over 4.5% in mid-August amid the abrupt dismissal of former CEO Christopher Kubasik for alleged violations of the company’s code of conduct. The stock has since retraced part of those losses, though it remains down roughly a quarter from its 52-week high of $379.23 set earlier this year.
Jefferies assigned a Hold rating to L3Harris despite the bullish price target, citing lingering uncertainty over the planned initial public offering of the company’s Missile Solutions unit, Axyv, which has no defined timeline. The firm also noted leadership transition risks following Kubasik’s departure, which had contributed to the prior selloff.
The company reported a record backlog of $42 billion and reaffirmed its full-year 2026 revenue guidance in the range of $23 billion to $23.5 billion. Second-quarter results showed an 8% increase in revenue and a 28% rise in diluted earnings per share, providing some support for the upgraded outlook.
Defense sector peers including Northrop Grumman, Lockheed Martin, and RTX traded largely flat on the day, with no direct catalyst linking their performance to L3Harris’s move. The broader market reflected modest gains, with the S&P 500 up 0.1% and the Dow Jones Industrial Average essentially unchanged.
