) has clinched a $155.6 million missile contract from the German
navy. The deal allows Raytheon to construct Block 2 Rolling
Airframe Missiles ("RAM"). This is the biggest exclusive RAM
award made by Germany so far.
Per the deal, RAM Block 2 production will be done at Raytheon
Missile Systems' facilities in Tucson, Ariz. RAM is a mutual
venture between the U.S. and German administrations with support
from industry players like Raytheon and RAMSYS of Germany. RAMSYS
as well as Raytheon will share this latest RAM production
RAM is a light weight and supersonic missile used for defense
against anti-ship cruise missiles and helicopters. The missile is
already used on 100 or so ships in the U.S., Turkey, Japan,
Greece, Egypt, Republic of Korea, and the United Arab Emirates.
It is a type of self-governing dual-mode, passive radio frequency
and infrared guidance designed missile that counters numerous
Based in Waltham, Mass., Raytheon Company is a technology and
innovation leader specializing in defense, homeland security and
other government markets throughout the world. The company
provides state-of-the-art electronics, mission systems
integration and other capabilities in the areas of sensing,
effects, and command, control, communications and intelligence
systems, as well as a broad range of mission support services.
Raytheon remains focused on strong program execution, prudent
capital management and strategic investments. In spite of the
declining trend in U.S. defense spending, Raytheon is one of the
best-positioned companies among the large-cap defense players due
to its non-platform-centric focus. The company enjoys impressive
order bookings and order backlog, an improving balance sheet,
growing cash flow and operational enhancements.
However, these positives are offset by uncertainties related to
the U.S. defense budget, the fate of high-cost programs, risks
related to key project executions and order cancellations.
The company presently retains a short-term Zacks Rank #3 (Hold).
Other stocks that look promising and worth accumulating now
include Zacks Ranked #2 (Buy)
FLIR Systems, Inc.
Alliant Techsystems Inc.
ALLIANT TECHSYS (ATK): Free Stock Analysis
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RAYTHEON CO (RTN): Free Stock Analysis Report
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