Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
L3Harris Technologies Inc: Will the Aerojet acquisition prove transformative, or will near-term hurdles impede momentum?- Major Drivers, Earnings Thesis & Initiation of Coverage: Review, Forecasts,DCF, Valuation, Peer Analysis, ESG & Risks
L3Harris Technologies Inc. delivered a robust second quarter of 2024, with revenue surging 13% and an impressive 12.91% year-over-year growth, despite ongoing challenges. The big question on everyone’s mind—will the Aerojet Rocketdyne acquisition truly deliver the game-changing synergies investors expect? The acquisition has already driven a 40% reduction in overdue deliveries and offers L3Harris a critical foothold in high-growth areas like munitions, missile systems, and space exploration. Coupled with strong demand in defense, the company continues to capitalize on its national security contracts, including a nearly $1 billion IDIQ for the U.S. Navy.
However, there are headwinds. Supply chain disruptions and program execution risks, particularly in Aerojet’s complex integration, weigh on short-term growth. The LHX NeXt program, focusing on supply chain optimization and infrastructure modernization, is designed to ease these pressures, but challenges persist in workforce costs and shifting defense priorities.
The tailwinds? L3Harris’ growing backlog, new defense contracts, and strategic alignment with NATO markets are set to drive resilient revenue. The company’s disciplined capital strategy, cost optimization, and operational excellence further solidify long-term prospects. Will the Aerojet acquisition prove transformative, or will near-term hurdles impede momentum? We delve into Major Drivers, Our perpective & follow up to our Initiation of Coverage :Earnings Review F2Q24, Forecasts,DCF, Valuation, Peer Analysis, ESG & Risks
