11:40 AM EDT, 10/28/2024 (MT Newswires) -- L3Harris Technologies ( LHX ) is "overdelivering" on plans to reinvent its technology infrastructure and operations, Morgan Stanley said Monday in a report.

Management expects to report at least $600 million in run rate cost savings by the end of this year, topping a $400 million target and moving ahead of schedule, Morgan Stanley said.

"LHX NeXt efforts are now focused on supply chain management and digital improvements across the enterprise," the report said.

Additionally, L3Harris' ( LHX ) collaboration with Palantir Technologies (PLTR) on the US Army's Titan program is expected to provide "new bidding opportunities," including digital transformation for defense and aerospace company technology company, Morgan Stanley said.

L3Harris ( LHX ) is expected to buy back $3 billion in shares in 2025-26, the report said.

Morgan Stanley raised its price target on L3Harris ( LHX ) to $275 from $257 and maintained an equalweight rating on the stock.

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