The U.S. Army Program Executive Office Missiles and Space has given a $237 million contract to Dynetics, a subsidiary of Leidos Holdings’ (LDOS), for the Enduring Indirect Fires Protection Capability (IFPC) to produce its mobile ground-based weapon system.

The weapon system is designed to engage and defeat Unmanned Aircraft System (UAS) and Cruise Missile (CM) threats. Alabama-based Dynetics offers engineering, scientific and IT solutions to the national security, cyber security, space and critical infrastructure sectors.

Leidos provides scientific, engineering and information technology services and solutions to the defense, intelligence, civil and health industries. Following the announcement, shares of the company jumped nearly 2% to close at $96.61 on Monday.

The contract includes an option for follow on production of 400 launchers with associated interceptors. (See Leidos stock chart on TipRanks)

Dynetics will manufacture the components, assemble them and carry out system integration in Huntsville, Alabama. It will deliver the first set of four weapon systems in 2022 and 12 units by the end of 2023.

The Senior Vice-President of Weapons Technology and Manufacturing at Dynetics, Ronnie Chronister, said, “Dynetics looks forward to delivering this next-generation solution to meet the Army's needs now and in the future. We're ready to tackle this urgent schedule, supporting the safety of our soldiers with this integrated air and missile defense capability.”

On September 15, Jefferies (JEF) analyst Sheila Kahyaoglu maintained a Buy rating on Leidos with a price target of $120 (24.2% upside potential). The analyst expects the company to report earnings per share (EPS) of $1.20 in the third quarter.

Overall, the stock has a Strong Buy consensus rating based on 6 Buys and 1 Hold. The average Leidos Holdings price target of $116.67 implies 20.8% upside potential. Shares have lost 5.7% year-to-date.

Related News:
Spotify Launches Global Brand Campaign to Attract Advertisers – Report
Amazon to Offer Business Insurance in U.K. — Report
Scientific Games to Sell OpenBet to Endeavor Group for $1.2B

The post Leidos’ Subsidiary Bags $237M U.S. Army Contract; Shares Rise 2% appeared first on TipRanks Financial Blog.

----------------------------

By: Richika Biyani
Title: Leidos’ Subsidiary Bags $237M U.S. Army Contract; Shares Rise 2%
Sourced From: blog.tipranks.com/leidos-subsidiary-bags-237m-u-s-army-contract-shares-rise-2/
Published Date: Tue, 28 Sep 2021 12:56:39 +0000

Read More