L3Harris Technologies upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Kristine Liwag upgraded L3Harris Technologies to Overweight from Equal Weight with a price target of $278, up from $263. The market has yet to fully price in the extent of geopolitical realities and stronger focus on strategic competition, which supports a positive view on U.S. defense stocks heading into 2023, Liwag tells investors in a research note. The analyst believes 2023 should continue to be driven by geopolitical perceptions, with the most significant growth from higher defense spending commitments not materializing until the 2024-2025 timeframe. Liwag views L3Harris as a tactical value play with a too wide valuation gap versus peers.