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    L3Harris Technologies (LHX) Could Be 28% Undervalued As $4.7b Deal Sharpens Focus

    Simply Wall St·09/18/2026 21:24:55
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    L3Harris Technologies (LHX) stock is back in focus after the company received a US$4.7b undefinitized contract from Lockheed Martin to supply PAC-3 MSE propulsion systems over seven years.

    For context, L3Harris Technologies shares trade at US$247.29. The 30-day share price return is down 10.76%, and the 90-day share price return is down 16.12%. This comes even as contracts like the US$4.7b PAC-3 propulsion deal and a recent US$60m U.S. Air Force sensor award keep feeding an order book that underpins a 50.92% total shareholder return over three years.

    Scan defense contractors with similar contract momentum to L3Harris Technologies by running the curated 37 power grid technology and infrastructure stocks in minutes.

    The share price has slipped while analyst and intrinsic value estimates sit far higher. For L3Harris Technologies, does that gap signal mispricing, or a market reset that still has further to run?

    Most Popular Narrative: 28% Undervalued

    L3Harris Technologies is framed as undervalued in the most widely followed narrative, with a fair value of about $343 against the recent $247.29 share price. That gap is tied directly to expectations about steady contract execution and how future earnings could be priced.

    The U.S. defense budget is expected to grow, with new defense initiatives and a potential increase in funding that could benefit L3Harris, supporting revenue growth.

    L3Harris is well-positioned in several key growth areas, such as missile warning and tracking, due to recent investments and capability alignment, likely increasing future revenue.

    See why 90 investors see L3Harris Technologies as 28% undervalued.

    That widely shared view leans on a discount rate of 8.41% and assumes L3Harris Technologies can lift profit margins from 8.1% toward about 10.8%, while revenue compounds in the mid single digits. It also incorporates analyst expectations that earnings could reach roughly $3.0b by around 2029, with the stock trading on a future P/E of about 26.6x that profit base.

    Across those forecasts, the narrative fair value clusters around $343.27 per share, compared with a current analyst price target of about $342.36 and the $247.29 last close. From that framework, the conclusion is that the market price reflects a large discount to the earnings and cash flow path embedded in the narrative.

    Result: Fair Value of $343 (UNDERVALUED)

    Still, the narrative around L3Harris Technologies can crack if U.S. budget pressure limits program funding or if fixed price development contracts squeeze profitability harder than expected.

    Find out about the key risks to this L3Harris Technologies narrative.

    Next Steps

    If the L3Harris Technologies story seems to balance optimism with caution, consider reviewing the same data points yourself, including the 6 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond L3Harris Technologies?

    Do not stop with L3Harris Technologies. Use the same structured approach to scan new opportunities, compare fundamentals quickly, and keep your watchlist genuinely competitive.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.