L3Harris Technologies upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded L3Harris Technologies (LHX) to Overweight from Equal Weight with a price target of $209, up from $204. Government shutdown fears could provide an attractive entry point near-term for defense stocks, the analyst tells investors in a research note. The firm thinks estimates for L3Harris have troughed and sees “catalysts to realize value,” including estimates moving higher to incorporate Aerojet Rocketdyne (AJRD), a December investor day that likely highlights new long-term targets, and divestiture of non-core assets, which could speed the company’s de-leveraging. The company’s portfolio lends itself to growth at least in-line with its defense peers over the coming years, while the stock trades at a significant discount, says Wells.