LHX

L3Harris Technologies Inc

Industrial/Transportation


Presented:07/14/2020
Price:$162.36
Cap:$35.22B
Current Price:$245.30
Cap:$46.53B

Presented

Date07/14/2020
Price$162.36
Market Cap$35.22B
Ent Value$46.53B
P/E Ratio19.48x
Book Value$27.58
Div Yield1.97%
Shares O/S216.90M
Ave Daily Vol1,669,339
Short IntN/A

Current

Price$245.30
Market Cap$46.53B
L3Harris Technologies, Inc. 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. It operates through the following segments: Integrated Mission Systems; Space and Airborne Systems; Communication Systems; and Aviation Systems. The Integrated Mission Systems segment include intelligence, surveillance, and reconnaissance; advanced electro optical and infrared; and maritime power and navigation. The Space and Airborne Systems segment comprises space payloads, sensors and full-mission solutions; classified intelligence and cyber defense; avionics; and electronic warfare. The Communication Systems segment consists tactical communications; broadband communications; L3's night vision; and public safety. The Aviation Systems segment compose defense aviation products; security, detection and other commercial aviation products; air traffic management; and commercial and military pilot training. The company was founded in 2019 and is headquartered in Melbourne, FL.

Publicly traded companies mentioned herein: L3Harris Technologies Inc (LHX)

Highlights

The presenter is long shares of L3Harris Technologies Inc (LHX), which is down ~20% this year along with other defense companies. This is mainly from multiple compression due to budget concerns in the wake of COVID-19. Despite defense not being a priority spending avenue at this point, he is bullish on the space going forward. Numbers haven’t come down and he finds it likely that LHX will continue buying back stock at low prices. Therefore, he likes LHX at ~15x consensus FCF (~$160 per share). While it could take 6+ months, he expects the stock to recover rapidly, as it did in 2011 - 2012, the last time defense budget concerns caused a sell off. 

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Idea Discussion

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