Aerospace and defense company General Dynamics (NYSE: GD) recently revealed that its business unit, General Dynamics Information Technology (GDIT), has been awarded the Customer Care Center (CCC) task order on the Solutions for the Information Technology Enterprise (SITE) III contract by the Defense Intelligence Agency. The order is valued at $829 million and has a tenure of 10 years.
Following the news, shares of the company gained over 1% to close at $213.76 on Friday.
Details of the Deal
The terms of the order entail GDIT providing various remote and on-site IT services to support networks and domains at DIA locations globally, including modernizing workflows through automation and deploying the agency’s first customer experience (CX) team that will use data insights, advanced analytics and CX methodologies to continuously enhance services and smoothly resolve IT-related issues.
Management Commentary
The President of GDIT, Amy Gilliland, said, “As DIA implements its IT modernization strategy over the next decade, we look forward to partnering with the agency to enable users to save time, work faster and stay focused on their mission of providing intelligence to our military forces.”
Stock Rating
Recently, Morgan Stanley analyst Kristine Liwag upgraded the stock to a Hold from Sell with a price target of $215.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 5 Buys and 3 Holds. The average General Dynamics price target of $233.29 implies that the stock has upside potential of 9.1% from current levels. Shares have gained 30.9% over the past year.
Positive Investor Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on GD. Further, 9.6% of portfolios tracked by TipRanks, increased their exposure to GD stock over the past 30 days.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Cineplex Q4 Revenue Rise 472%, Loss Shrinks
Kellogg Exceeds Q4 Expectations; Shares Pop 5%
fuboTV Secures Market Access Deal in Three More States
