L3Harris Technologies, Inc.

L3Harris finished the year on a high note and delivered an all-around beat while continuing to build momentum going into 2023. It is also establishing a new business to increase industry competition and provide DoD choices. The RL10 is a high-end upper-stage engine that the ELA has ordered well over 100 of for the new Vulcan launch vehicle. Besides, they believe that the defence budget, and the demand for their offerings bring enormous growth prospects. The company has gone on to acquire two unique assets in ViaSat’s Tactical Data Link business and Aerojet Rocketdyne. Aerojet Rocketdyne is a national asset that will be essential to future combat since it holds a leadership position in propulsion and gives it access to new markets for weapons, space exploration, and hypersonics. The management believes these acquisitions will be significantly accretive and successful. We remain optimistic about the company’s future growth and maintain our ‘Hold’ rating with a revised target price.