L3Harris Technologies (NYSE:LHX) was raised to Overweight from Neutral with a $240 per share price target by JPMorgan on Thursday.
Analysts told investors that the bank views the company as the defense product stock with the most upside potential.
"We see a relatively attractive valuation, cash flow that should be inflecting higher, and an increased focus on shareholder value," analysts wrote in a note to clients.
"LHX has faced some execution challenges in recent years, but we think it is better positioned going forward, with a margin rate set to stabilize and free cash flow set to inflect," they added.
Focusing on geopolitics, JPMorgan expects Congress to pass a budget in the next few months. While they believe Ukraine support may be tougher, ultimately, they expect some funding.