Harris Shares Edge Higher On 2010 Outlook

WASHINGTON (AP) — Harris Corp. shares jumped 10 percent on Wednesday, a day after the company posted better-than-expected first-quarter results and lifted its outlook.

Both General Dynamics Corp. and Harris are major suppliers of communications technology for the U.S. military; however, Harris has gained an edge, several analysts said in investors' notes.

While rival General Dynamic's Joint Tactical Radio System has been delayed several times, Harris is already shipping its Falcon III manpack and handheld radios to soldiers overseas, said CL King analyst Lawrence Harris.

"It now appears that the Falcon III manpack will benefit from Afghanistan and the late arrival of the competing General Dynamics' product," he added.

The joint tactical radio system is a major Pentagon program that will replace much of the military's existing radio equipment with a new system that will enable easier communication among all of the services.

CL King raised its price target on shares of Harris to $50, up from $46. The analyst also upgraded his rating, to "Strong Buy" from "Accumulate" based on anticipated orders for its tactical radio system.