L3Harris Technologies (LHX) has bagged its first robotics contract with the U.S. Air Force worth $85 million to supply robots to its bases around the world.
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Per the terms of the 10-year contract, L3Harris Technologies will develop up to 170 T7 robots and provide robotics support, maintenance, and training to replace the aging, 20-year-old Explosive Ordnance Disposal (EOD) system. The EOD system was responsible for mitigating explosive threats at the bases. Initial deliveries are scheduled to be made in 2022.
Shares of the U.S.-based technology company, defense contractor, and information technology services provider have jumped 27% over the past year. (See L3Harris Technologies stock charts on TipRanks)
L3Harris recently successfully delivered Project STARTER to the U.K. Ministry of Defence, replacing its old fleet of EOD robots with 122 new T7 robots.
Ed Zoiss, President of Space and Airborne Systems at L3Harris commented, “The T7 is setting the new standard for large EOD robots and has received outstanding technical and usability ratings from the Air Force.”
He further added, “This award highlights our ongoing technology investment and positions L3Harris as the premier supplier of large EOD robots.”
Wolfe Research analyst Michael Maugeri recently initiated coverage on L3Harris Technologies with a Hold rating.
Mauger believes that the L3Harris Technologies shares “still has some room to run” based on its growth potential and margin expansion. However, the analyst added that the upside is already priced into the share price at the current levels.
Overall, the stock has a Moderate Buy consensus rating based on 8 Buys and 4 Holds. The average L3Harris Technologies price target of $255.82 implies 12.7% upside potential from current levels.
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