L3Harris (LHX) Stock Forecast & Price Target

L3Harris Technologies has demonstrated strong financial performance, particularly within its Aerojet segment, which reported organic sales growth of approximately 12% and robust adjusted operating margins of 13.3%. The company has also raised its 2025 revenue guidance by $100 million for both the Integrated Mission Systems (IMS) and Space and Airborne Systems (SAS) sectors, reflecting an overall strengthening of its market position. Additionally, free cash flow guidance for FY25 has been increased by $200 million to $2.65 billion, exceeding consensus expectations by 9%, highlighting the company's solid financial health and operational efficiency.

L3Harris Technologies reported a decline in operating margins for its SAS segment, falling by 30 basis points year-over-year to 12.3%, primarily due to adverse product mix and end-of-life asset sales. The company's Integrated Mission Systems performance also experienced a 3% year-over-year decrease, indicating challenges in maintaining growth, although organic growth was noted at 6%. Furthermore, the 2025 outlook raises concerns with budget timing risks and evident softness in the Space segment, compounded by unfavorable Earned Value Management adjustments linked to project underutilization.