Melbourne, Florida-based L3Harris Technologies, Inc. (LHX) is a global aerospace and defense technology innovator that delivers mission-critical solutions for government and commercial customers. Valued at a market cap of $44.7 billion, the company provides advanced technologies across the space, air, land, sea, and cyber domains.

This aerospace and defense company has underperformed the broader market over the past 52 weeks. Shares of LHX have gained 6.2% over this time frame, while the broader S&P 500 Index ($SPX) has surged 10.1%. Nonetheless, on a YTD basis, the stock is up 13.8%, outpacing SPX’s marginal loss. 

Narrowing the focus, LHX has also lagged behind the SPDR S&P Aerospace & Defense ETF’s (XAR) 28.5% uptick over the past 52 weeks. However, it has outperformed the ETF’s 11.5% rise on a YTD basis. 

On Apr. 24, shares of LHX closed down marginally after its Q1 earnings release. The company’s revenue declined 1.5% year-over-year to $5.1 billion and missed the consensus estimates by 1.9%. Lower integrated mission systems sales and a decline in space & airborne systems revenue affected its overall top line. Additionally, in light of its Q1 performance and the completion of the commercial aviation solutions divestiture, LHX lowered its fiscal 2025 outlook, now projecting revenue between $21.4 billion and $21.7 billion, and adjusted EPS in the range of $10.30 to $10.50. 

Nonetheless, on a positive note, due to higher adjusted segment operating income, its adjusted EPS grew 7.1% from the year-ago quarter to $2.41 and surpassed the forecasted figure. This earnings strength might have helped balance out investor sentiment and softened the blow from the lowered guidance and revenue miss.

For the current fiscal year, ending in December, analysts expect LHX’s EPS to decline 20.2% year over year to $10.45. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. 

Among the 20 analysts covering the stock, the consensus rating is a “Strong Buy” which is based on 15 “Strong Buy,” and five “Hold” ratings. 

This configuration is more bullish than two months ago, with an overall “Moderate Buy” rating, consisting of 14 analysts suggesting a “Strong Buy,” and one recommending “Strong Sell.”

On Apr. 29, Barclays PLC (BCS) analyst David E. Strauss maintained a “Buy” rating on LHX and set a price target of $255, which indicates a 6.6% potential upside from the current levels. 

The mean price target of $259.14 represents an 8.3% premium from LHX’s current price levels, while the Street-high price target of $324 suggests an ambitious upside potential of 35.5%.