L3Harris Technologies (LHX) stock is trending today following news of a new contract from the U.S. Navy. The aerospace technology producer announced this morning that it has been awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract, a type of agreement allowing the U.S. Navy to order products or services as needed, without specifying the exact quantity upfront. The contract tasks L3Harris with delivering its Multifunctional Information Distribution System Joint Tactical Radio System Terminals (MIDS JTRS) over the next five years.
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The MIDS JTRS is a critical communication system that enhances secure and resilient data sharing across military operations, whether in the air, on the ground, or at sea. Given the potential value of the contract—up to $999 million—this announcement could serve as a significant and ongoing catalyst for LHX stock, supporting its performance in the defense sector.
What’s Happening with L3Harris Stock?
Despite news of this lucrative contract, shares of L3Harris Technologies are down today, most likely due to negative market momentum. Several other leading aerospace stocks such as Lockheed Martin (LMT) and Northrop Grumman (NOC) are down as well, though both have fallen further than LHX so far. While trading has been fairly volatile for L3Harris over the past quarter, shares have performed well and are up 6.5% for the three-month period.
The aerospace technology producer announced this morning that the U.S. Navy has offered it an IDIQ contract to deliver its MIDS JTRS system over an upcoming five-year period. With geopolitical tensions rising steadily and Donald Trump’s incoming presidency likely to escalate them, aerospace and defense stocks could be destined for significant growth as the U.S. Department of Defense (DOD) and armed forces hand out new contracts. Trump’s pro-military attitude suggests that he will keep the DOD well funded, ensuring lucrative new opportunities for L3 and its peers.
Is LHX Stock a Buy, Sell or Hold?
With Trump’s presidency quickly approaching, Wall Street is mostly bullish on L3Harris. Analysts have a Moderate Buy consensus rating on LHX stock based on 12 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 31% rally in its share price over the past year, the average LHX price target of $284 per share implies 18% upside potential.
