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Stock impact report

L3Harris missile spin highlights policy pressure and valuation questions, UBS says [Seeking Alpha]

L3Harris Technologies, Inc. (LHX) 
Last l3harris technologies, inc. earnings: 2/4 06:30 am Check Earnings Report
Company Research Source: Seeking Alpha
mounting pressure from Washington for defense contractors to accelerate production, according to BNP Paribas analyst Matthew Akers. Under the Quick Insights The government is urging L3Harris to boost capital expenditure and R&D rather than prioritizing shareholder returns, influencing L3Harris to potentially allocate more capital toward production capacity and research initiatives in response to Washington's pressure. A missile-focused L3Harris business could receive a higher market multiple, possibly near 20x forward EV/EBITDA, which could value the standalone company around $10 billion, much higher than traditional diversified defense contractors. Missile assets are seen as undervalued within diversified defense companies, and separating them may help realize greater value for investors due to increased demand and focused business operations. Recommended For You More Trending News Show less Read more
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