L3Harris Technologies (NYSE: LHX) has restructured its business and moved from four to three focused segments – Integrated Mission Systems, Space and Airborne Systems, and Communication Systems.
With a focus on high-growth and technology-differentiated businesses, L3Harris initiated a portfolio shaping process in 2019, the positive outcome of which enabled the new and streamlined structure.
L3Harris, the prime defense contractor for top-tier U.S. and international missions, is a global aerospace and defense technology innovator. It provides advanced defense and commercial technologies across space, air, land, sea, and cyber sectors.
The CEO of L3Harris, Christopher E. Kubasik, said, “Our customers and partners know L3Harris brings to bear cutting-edge capabilities to tackle some of our most complex national security problems. Our business segments will continue to lead market innovation in their focus areas, fueling advanced solutions for the toughest operational challenges.”
UBS analyst Myles Walton recently downgraded the stock to a Hold from a Buy and lowered the price target to $235 (11.07% upside potential) from $260.
Walton believes that the company’s capital return and free cash flow conversion have reached their peak.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 3 Buys and 4 Holds. The average L3Harris price target of $245.86 implies 16.21% upside potential. Shares have gained 18.3% over the past year.
According to the new TipRanks Risk Factors tool, L3Harris stock is at risk mainly from three factors: Finance and Corporate, Production, and Macro & Political, which contribute 23% each to the total 30 risks identified for the stock.