L3Harris Technologies (LHX) recently signed two long term framework agreements with the Department of War and Lockheed Martin that aim to sharply expand propulsion production for PAC-3 MSE and THAAD missile defense systems.

L3Harris Technologies’ latest PAC-3 MSE and THAAD agreements come after a period of mixed share price moves, with the stock down 6.03% on a year-to-date share price basis but delivering a 62.21% total shareholder return over three years. This suggests longer term holders have seen stronger gains even as recent momentum has faded.

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After a strong three year run yet a softer move so far in 2026, the key issue for L3Harris Technologies is whether recent defense wins still leave meaningful upside ahead, or if most of the easy gains already sit in the rearview mirror.

Most Popular Narrative: 23.5% Undervalued

L3Harris Technologies closed at $286.12, while the most followed narrative puts fair value at $374. That gap rests on a detailed earnings and margin roadmap.

The analysts have a consensus price target of $374.0 for L3Harris Technologies based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $443.0, and the most bearish reporting a price target of just $285.0.

Read the complete narrative. Read the complete narrative.

Want to see what sits behind that valuation gap for L3Harris Technologies? The narrative leans on a specific mix of revenue growth, higher margins and a premium future earnings multiple. Curious which of those assumptions carries the most weight in the 8.14% discount rate model, and how much optimism is built into each input?

Result: Fair Value of $374 (UNDERVALUED)

However, the L3Harris Technologies narrative still hinges on timely contract execution and stable defense budgets, so any program delays or tighter funding could quickly challenge those assumptions.

Next Steps

With mixed signals around L3Harris Technologies and its future path, this is a good moment to review the numbers yourself and weigh both sides of the story. To see that balance clearly, you can start with the 5 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.