L3Harris Technologies downgraded to Market Perform from Outperform at Bernstein

Bernstein analyst Douglas Harned downgraded L3Harris Technologies to Market Perform from Outperform with a price target of $210, down from $239. The analyst still expects strong sales growth for L3Harris, supported by rising backlogs. The problem, however, remains on margins with supply chain issues, inflation on fixed-price contracts, and execution, the analyst tells investors in a research note. The firm says these factors, plus deployment of cash to the Aerojet Rocketdyne deal, led to underperformance by the stock since the Q3 of 2022 earnings report. Bernstein sees “little urgency to move into the stock now” as it works through the next 12-18 months.