Defense Contractors May Follow L3Harris After Pentagon Investment -- Market Talk

Dow Jones01-14

1118 ET - The Pentagon's $1 billion investment into L3Harris Technologies' missile business is a positive development for the company, Vertical Research Partners analysts say in a research note. "We could see other U.S. defense contractors looking to pursue such an approach," they write. Still, questions about the agreement remain. "What we don't know is whether the Defense Department actually has the authority to make this kind of investment, and if it would need Congressional approval," the analysts say. And it remains to be seen whether a company specializing in the production of rocket and missile components will be fully valued by shareholders, as the businesses are generally a smaller part of a much bigger corporation. L3Harris shares gain 2.8%. (connor.hart@wsj.com)

(END) Dow Jones Newswires

January 13, 2026 11:18 ET (16:18 GMT)

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