Harris Corp (HRS) rose more than 6% after the contractor said it received a $419 million purchase agreement from the U.S. Army to supply advanced tactical radios to combat troops. These radios distribute information in an encrypted form and are used to carry voice-and-data traffic through all government levels up to and including Top Secret classified levels.
The purchase agreement is equal to 8.4% of Harris’ fiscal 2009 revenue.
Following the news, Raymon James analyst Chris Quilty lifted the firm’s rating to “strong buy” from “outperform” and saying the radio “represents a potential multibillion product category for Harris over the next several years.”
We have long felt Harris is undervalued and continues to be one of our favorite defense plays for reasons detailed in this March 24 post.
--
Peter J. Lazaroff, Investment Analyst
Friday, October 16, 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment