Bernstein Lifts L3Harris Target to $405 on Q4 Beat and Backlog Growth
Bernstein raised its price target on L3Harris to $405 from $398 after Q4 EPS beat consensus and backlog saw a sizable increase. The company also secured a U.S. Navy contract to develop Red Wolf long-range missiles for the Marine Corps’ precision-strike program.
1. Bernstein Price Target Increase
On February 6, Bernstein raised its price target on L3Harris to $405 from $398 and upheld an Outperform rating, citing stronger-than-expected backlog expansion and Q4 earnings that outpaced consensus.
2. Q4 Performance and Backlog Expansion
L3Harris reported Q4 EPS above consensus estimates and noted a sizable increase in backlog, driven by robust demand across its Space & Airborne Systems and Integrated Mission Systems segments.
3. U.S. Navy Red Wolf Contract
On January 30, L3Harris secured a U.S. Navy contract to develop Red Wolf long-range missiles for the Marine Corps’ precision-strike program, targeting moving threats at distances beyond 200 nautical miles.
4. Adjusted Earnings Outlook
Bernstein slightly lowered its 2026 EPS estimate to reflect a higher share count while raising its longer-term earnings outlook in anticipation of sustained defense spending growth.