L3Harris Technologies (LHX) showed secular growth with

"encouraging" 2028 outlook at its investor day, RBC Capital Markets said in a Thursday note.

The firm expects about 8% topline growth, led by the Missile Solutions segment with 2028 free cash flow of $3.5 billion, the report said. The company also guided to 2028 operating income margins of about 16.3%.

"We believe LHX remains well positioned relative to DoW spending priorities, which supports the view that the top-line outlook is conservative," the note said. "However, the investments to support the growth are ramping."

RBC kept its sector perform rating and $365 price target.

Price: 353.12, Change: +12.07, Percent Change: +3.54