Goldman Sachs Defense Stocks: Top 12 Stock Picks

Page 5 of 11

7. L3Harris Technologies, Inc. (NYSE:LHX)

Stake Value as of Q4 2024: $304,901,080

L3Harris Technologies, Inc. (NYSE:LHX) is known for its wireless and night vision equipment, command and control systems, avionics, and terrestrial and spaceborne antennas. The company was formed in 2019 after Harris Corporation and L3 Technologies merged.

It is among the top defense picks from the Goldman Sachs stock portfolio. On April 11, the firm upgraded L3Harris Technologies, Inc. (NYSE:LHX)’s rating from Sell to Buy and raised its price target to $263 per share from $198. The analyst cited the company’s agile business model and strong financial health as major factors behind the upgrade.

Recent contract awards have enhanced L3Harris Technologies, Inc. (NYSE:LHX)’s appeal among investors. On April 7, it received the next contract option year from the US Space Force to continue the modernization and sustainment of ground system infrastructure for space domain awareness capabilities.

On March 31, the company signed a long-term agreement, valued at up to 1 billion euros, with the Dutch Ministry of Defense for Falcon IV radios for the FOXTROT program. In January, L3Harris Technologies, Inc. (NYSE:LHX) clinched a $263 million deal from the US Army for additional production of Enhanced Night Vision Goggle–Binocular (ENVG-B) systems.

L3Harris Technologies, Inc. (NYSE:LHX) recently announced the delivery of the first missionized OA-1K Skyraider II aircraft to the US Air Force to support special operations. The aircraft will be used to provide close air support, armed intelligence, surveillance, and precision strike capabilities.

According to Insider Monkey’s database for Q4 2024, 48 hedge funds held a stake in L3Harris Technologies, Inc. (NYSE:LHX), up from 40 at the end of the third quarter. Wall Street analysts are also bullish on the stock, with a consensus Buy rating and an average share price upside potential of 17%.

Page 5 of 11