L3Harris Technologies, Inc. (NYSE:LHX) rallied by as much as 4% on May 21 as President Donald Trump’s administration announced plans to build the Golden Dome missile defense system that leverages its satellites. The $175 billion defense system is slated for completion in less than three years.
The aerospace and defense company has carved a niche in developing mission-critical solutions for governments and commercial customers. Consequently, it is well-positioned to be one of the biggest beneficiaries of the development of the Golden Dome System amid calls for more homegrown products and systems. The latest deal comes as the company is completing a $125 million expansion at Fort Wayne.
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Additionally, L3Harris Technologies has already inked a $214 million order deal under Germany’s Digitalization Land-Based program. The program is for the delivery of interoperable communication systems to enhance the capabilities of the German armed forces.
Amid the wave of deals, JPMorgan has reiterated an Overweight rating on the stock with a $255 price target. The bullish stance stems from the company’s involvement in significant defense programs expected to bolster its revenue base. With an annual revenue base of about $21 billion, L3Harris has rewarded investors with dividends for 55 years.
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