Goldman Sachs Taps This Defense Stock As Prime Beneficiary Of Trump's $175B Golden Dome

Goldman Sachs believes L3Harris Technologies Inc. LHX could be among the biggest corporate winners of the Trump administration’s $175 billion “Golden Dome” initiative.

What Happened: Goldman Sachs analyst Noah Poponak reiterated a Buy rating on L3Harris in a note Thursday following management meetings, highlighting the firm's positioning in key elements of the so-called “Golden Dome.”

On May 20, President Donald Trump, Secretary of Defense Pete Hegseth, and top military leaders pitched the Golden Dome as a multi-layered national missile defense system that can counter hypersonic and ballistic missiles.

The program, they say, is expected to be completed within three years, though experts note the complexity could extend that timeline.

Beyond the missile defense space, L3Harris has continued to report strength in high-margin communications and signal processing technologies.

Management emphasized global demand for battlefield integration systems, which are increasingly expected to feature artificial intelligence and data analytics, potentially in partnership with firms like Palantir Technologies Inc. PLTR.

“LHX continues to see opportunity for margin expansion and free cash flow growth,” said Poponak. “It also remains focused on cost and productivity improvement programs.”

L3Harris believes the dome initiative could bring "billions of dollars in incremental revenue." The company has a High-Altitude Ballistic Tracking and Surveillance System (HBTSS).

Observers also see L3Harris’ Aerojet Rocketdyne unit, acquired in 2023, as a technological leader in missile propulsion and guidance. Company management says it can benefit from missile-focused components of the initiative.

See Also: L3Harris Stock Moves Higher After Being Named In ‘Golden Dome’ Missile Defense System

Why It Matters: In the GOP tax bill that passed the House on Thursday, the Treasury is increasing the deficit by about $144 billion for Armed Services and $67 billion for Homeland Security, reflecting key spending priorities.

Golden Dome’s early funding allocation is pegged at $25 billion. At least $24.7 billion in proposed spending would go toward air and missile defense enhancements.

Key line items include:

• $7.2 billion for development of space-based military sensors
• $5.6 billion for space-based and boost-phase missile interceptors
• $2.2 billion for hypersonic defense system acceleration
• $2 billion for military satellite systems targeting airborne threat

What Trump and House Republicans dub the “big, beautiful bill” now heads to the Senate.

Shares of L3Harris climbed 3% to $239 on Thursday, outperforming peers like Lockheed Martin Corp. LMT, up 0.5%, and Northrop Grumman Corp. NOC, up 0.2%. Meanwhile, RTX Corp. RTX slipped 0.3%.

Goldman Sachs maintained a $283 price target for LHX shares, suggesting an 18% upside over the next 12 months.

Now Read:

• Xi Jinping’s China Wants Trump To Immediately Drop The Golden Dome Project Over ‘Strong Offensive Implications:’ ‘…Security Of All Countries Should Not Be Compromised’
  

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