L3Harris Tech LHX

L3Harris Tech LHX

Postby winston » Tue Sep 24, 2019 9:57 pm

not vested

L3Harris Technologies

This recently merged company is now the sixth-largest U.S. defense company.

L3Harris Technologies Inc. (NYSE: LHX) is an agile global aerospace and defense technology innovator, which engages in the provision of defense and commercial technologies across air, land, sea, space and cyber domains.

The company’s Integrated Mission Systems segment includes intelligence, surveillance and reconnaissance; advanced electro-optical and infrared; and maritime power and navigation.

The Space and Airborne Systems segment includes space payloads, sensors and full-mission solutions; classified intelligence and cyber defense; avionics; and electronic warfare.

The Communication Systems segment consists of tactical communications; broadband communications; L3’s night vision; and public safety.

And in the Aviation Systems segment, defense aviation products; security, detection and other commercial aviation products; air traffic management; and commercial and military pilot training.

Jefferies loves the recently merged company and said this:

We met with the management team last week and discussions were focused on the specifics around the revenue and cost synergies from the L3/Harris deal.

The long-term upside from the deal is more likely to come from revenue synergies and we note that every $200 million in new business wins per year equates to 12c of earnings at segment margins.

The company expects to accelerate margin expansion to 170 basis points or 1.7% in the second half (from 90 bps in the first half).

Management is targeting $500 million of net synergies and there is likely upside to that figure.

Shareholders receive a 1.41% dividend.

Jefferies has a $250 price target, while the consensus figure is $236.13. The stock closed at $213.30 on Monday.

Source: Jefferies
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