Morgan Stanley Upgrades L3Harris Technologies, Inc. (LHX) Buoyed by Golden Dome Opportunities

L3Harris Technologies (NYSE:LHX) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 16, analysts at Morgan Stanley upgraded L3Harris Technologies (NYSE:LHX) to an Overweight from Equalweight and raised the price target to $367 from $350.

Morgan Stanley Upgrades L3Harris Technologies, Inc. (LHX) Buoyed by Golden Dome Opportunities

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The upgrade is in response to the investment bank’s touting of strong operating momentum heading into 2026. L3Harris Technologies boasts of a favorable positioning for the future of warfare with reduced disruption risk from emerging defense technology competitors. Likewise, the investment bank is confident in its platform-agnostic approach, which is not subject to significant changes, unlike its competitors’.

Consequently, Morgan Stanley expects the company to capitalize on Golden Dome opportunities heading into 2026 and to propose improvements in Aerojet output. The company has already secured a follow-on production contract worth $200 million to manufacture Guided Multiple Launch Rocket System Insensitive Munition propulsion units. It has already initiated construction of an Arkansas Advanced Propulsion Facility focused on increasing manufacturing capacity by sixfold for various missile and defense systems.

L3Harris’ subsidiary, Aerojet Rocketdyne, missile solution president Scott Alexander said: “This GMLRS IM contract demonstrates L3Harris’ expertise in missile propulsion technology and its commitment to delivering high-performance, reliable propulsion solutions for military operations.

L3Harris Technologies, Inc. (NYSE:LHX) is an aerospace and defense technology company that provides advanced solutions for military, government, and commercial customers, focusing on mission-critical needs in air, land, sea, space, and cyber domains. It develops and supplies high-tech systems, including avionics, electronic warfare, cyber security, and unmanned systems.

While we acknowledge the potential of LHX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LHX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.