Baird Lifts Price Target to $420 After L3Harris Posts Record Backlog
Baird raised its price target for L3Harris to $420 from $385, reiterating an Outperform rating after management unveiled 2028 targets above expectations at its investor day. The company reported a record order backlog, sold a 60% stake in its civil Space Propulsion and Power unit, and plans a H2 2026 Missile Solutions IPO.
1. Baird Raises Price Target
On February 26, Baird boosted L3Harris’s price target to $420 from $385 and maintained an Outperform rating after management’s investor day unveiled 2028 targets exceeding expectations, underscoring confidence in the company’s long-term growth trajectory.
2. Backlog and Demand Trends
CEO Christopher Kubasik highlighted a record order backlog and steady customer demand during Q4 2025, noting these factors provide clear visibility into future revenue streams and reinforce the firm’s solid growth foundation.
3. Civil Space Propulsion Sale and Restructure
L3Harris sold a 60% stake in its civil Space Propulsion and Power business to AE Industrial Partners, aiming to sharpen focus on core defense priorities by reducing reporting segments from four to three and improving operational efficiency.
4. Missile Solutions IPO Plan
The company plans to pursue an IPO for its Missile Solutions business in H2 2026, with the Department of Defense as anchor investor, targeting over $4 billion in revenue and sustained double-digit growth for the newly public entity.