Jefferies resumes coverage on L3Harris with "hold" rating, shares fall
LHX•Jefferies resumes coverage and cites leadership and IPO uncertainty
Shares of U.S. defense contractor L3Harris LHX.N fell more than 1% to $259 as Jefferies reinstated coverage with a hold rating.
- Jefferies set a new price target of $315, implying about 20% upside to the stock's last close.
- The brokerage cited uncertainty surrounding the leadership change and an unclear path for the Missile Solutions IPO.
- L3Harris recently ousted CEO Kubasik over a conduct breach and appointed Sam Mehta as the new chief executive.
- Jefferies paused coverage on the defense contractor in November 2025 when the stock was rated buy with a price target of $365.
- The brokerage said an IPO overhang exists, with the process likely shelved until mid-'27 under new leadership.
- The IPO decision also depends on the company's ability to definitize $20 billion of multi-year draft NDAs to date, which require dual-sourced Solid Rocket Motors.
- Of 19 brokerages covering the stock, 13 rate it buy and 6 hold, according to LSEG data, with a median price target of $377.
- Up to the last close, the stock had fallen 10.70% year to date.
