L3Harris Technologies price target lowered to $234 from $240 at Credit Suisse

Credit Suisse lowered the firm’s price target on L3Harris Technologies to $234 from $240 and keeps an Outperform rating on the shares. The firm notes the company reported mixed Q1 results, with a 5% topline beat offset by soft margins at IMS and CS-resulting in an in-line segment EBIT print. The simple takeaway is that Q1 results derisk the revenue guide, but reinforce risk in the margin guide, and likely result in relatively flat segment EBIT revisions post result, Credit Suisse adds. The firm thinks the stock has a decent second half of the year setup, but the market may need to see the margin improvement before it believes it, and the budget overhang likely weighs on L3Harris as much as any defense prime given its greater exposure to short-cycle dynamics. Credit Suisse thinks this creates a difficult setup for the stock in the short term.