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$L3Harris Technologies, Inc.(LHX)$ 💣📈🅱️ U͎ L͎ L͎ I͎ S͎ H͎🚨 🛰️💣 $LHX: Decoding the Signals of a Warfare Tech Powerhouse 💣🛰️🚨12Jun25, 🇳🇿NZST

When a U.S. Senator with a seat on the Armed Services Committee and Cathie Wood’s ARK Invest both stake positions in L3Harris Technologies ($LHX), it’s not just a coincidence, it’s a signal. This isn’t merely a defence stock, it’s a pivotal player in the evolving landscape of modern warfare. I see a compelling case unfolding here, driven by insider conviction, technical momentum, and a macroeconomic tailwind that’s hard to ignore. Let me break it down.

🧠 Insider Conviction Meets Institutional Firepower

Senator Markwayne Mullin recently acquired shares of $LHX. His role on the Armed Services Committee gives him a front-row seat to the contracts that fuel this company’s revenue, hardly a casual move. Representative Gilbert Cisneros followed suit with a $15,000 investment. These aren’t impulsive trades, they’re calculated positions rooted in the expanding U.S. defence budget, now projected at $1.01 trillion for FY2026.

Then there’s ARK Invest. On 09Jun25, ARKQ and ARKX scooped up 10,744 shares worth over $2.6 million. While trimming positions in Coinbase and UiPath, Cathie Wood’s team doubled down on $LHX, signalling a deep belief in its role within the next wave of battlefield innovation. This isn’t diversification, it’s a deliberate bet on a thematic shift.

🔍 Technical Momentum: A Breakout in the Crosshairs

At $245.92, $LHX is trading just below a critical resistance of $255.85 on the weekly chart, having cleared its MA5 ($240.40) and MA30 ($220.01). A breach above $256 could unlock a megaphone channel targeting $273, $280, and even $324 if momentum sustains. Here’s what the indicators reveal:

   •   RSI(6): 81.63, robust momentum, though nearing overbought territory, suggesting a potential pause

   •   MACD: Bullish crossover with a widening histogram

   •   Volume: Rising steadily, with August $250 call options gaining 10.81% on 81 contracts traded

   •   Chart Pattern: A cup and handle formation is taking shape, with the handle consolidating near resistance. A classic precursor to a sustained upward move

For those eyeing entries, a pullback to $240–243 aligns with the MA5 and offers a solid risk-reward setup. The setup feels precise, almost engineered for a breakout.

📊 Short Interest: A Powder Keg Waiting to Ignite?

The short dynamics add another layer:

   •   Short Interest: 1.26 million shares

   •   Open Interest: 7.18 million

   •   Short Ratio: 24.36%

   •   Days to Cover: 3.92

A volume-driven push past $256 could force shorts to cover, amplifying the move. I’ve seen this playbook before with high-beta defence names. When the technicals align with fundamentals, the squeeze gets real.

🧩 Wall Street’s Take: Undervalued with Upside Potential

With a market cap of $45.4 billion and a P/E ratio of 28.7, $LHX stands out as reasonably priced compared to slower-growing peers. Analysts are taking notice:

   •   Citi: Raised their price target to $280 from $245 on 10Jun25

   •   Consensus: Average target of $262.24, with a high of $324 (FactSet, 19 analysts)

   •   Ratings: 72% Buy or Strong Buy, 0% Sell

Bernstein’s “Outperform” upgrade highlights undervaluation amid global defence spending trends. Hedge funds like ARK reinforce this with their recent buys, suggesting $LHX remains underappreciated.

💥 Innovation at the Core: VAMPIRE and Beyond

The VAMPIRE system, deployed in Europe since 2023 and recently expanded with a Pentagon contract, is a standout. It’s a portable, laser-guided missile launcher that neutralises drones and fortifies bases, now integrated into naval operations. But $LHX’s portfolio extends further:

   •   VLEO Satellites: Delivering rapid, high-resolution military intelligence

   •   AI-Driven Comms: Partnerships with Palantir and Shield AI for secure, low-latency targeting

   •   Falcon IV Radios: A €1 billion Dutch contract underscores its adoption

   •   Skyraider II: A sub-$50 million fighter jet gaining international traction

This isn’t just hardware, it’s the backbone of next-gen warfare logistics.

📈 Q1 Earnings: Resilience and Growth

Q1 2025 results showcase operational strength:

   •   Revenue: $5.1 billion (steady despite a shorter quarter)

   •   Non-GAAP EPS: $2.41, up 7% year-over-year

   •   Operating Margin: 15.6%, rising for six quarters

   •   Free Cash Flow: -$70 million, with full-year guidance at $2.4–2.5 billion

Full-year outlook:

   •   Revenue: $21.4–$21.7 billion

   •   EPS: $10.30–$10.50

   •   Margin: Mid-to-high 15%

A $1.1 billion Netherlands deal and Aerojet integration bolster the trajectory.

🏛️ Macro Backdrop: A Perfect Storm

Rising interest rates and inflation typically pressure industrials, but $LHX thrives as defence spending defies economic cycles. The FY2026 budget proposal of $1.01 trillion, coupled with geopolitical flashpoints like Ukraine, Taiwan, and the Middle East, fuels demand for $LHX’s tech. The Golden Dome missile shield initiative, accelerating under a new DoD resolution, positions $LHX as a direct beneficiary.

🧠 Contrarian Lens: A Stealth AI and Space Play

Forget the FAANG hype. $LHX is quietly building the infrastructure for AI-driven warfare and space dominance. Satellite-guided missiles, real-time comms, and modular systems make it a national security linchpin, all at a valuation that lags its potential.

🎯 My Strategy

Up 11% since my initial buy signal, I’m eyeing:

   •   Pullback: $240–243 for a fresh entry

   •   Breakout: Above $256 to ride the wave

   •   Targets: $273, $280, $324 if the trend extends

Conclusion: A Rare Convergence

L3Harris Technologies sits at a rare intersection. Insider buying, institutional backing, technical strength, and a macroeconomic runway that’s widening. Its innovations like VAMPIRE and VLEO satellites aren’t just products, they’re redefining warfare. Wall Street’s $324 ceiling feels conservative when you factor in the short squeeze potential and geopolitical catalysts. I’m targeting $273, $280, and $324, with $240–243 as my entry zone. This isn’t just a defence stock, it’s a proxy for the future of national power projection.

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