L3Harris Technologies upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Seth Seifman upgraded L3Harris Technologies to Overweight from Neutral with a $240 price target. Despite rising global defense spending and geopolitical tensions prompting comparisons to the 1930s, U.S. defense stocks lagged in 2023 and investors are not much more excited about 2024, the analyst tells investors in a research note. However, the firm believes the “narrative can change in 2024,” given the potential for positive developments over the next few months, some related to the budget. JPMorgan says L3Harris is the defense product stock with the most upside potential. The firm sees a relatively attractive valuation, cash flow that should be inflecting higher, and an increased focus on shareholder value.