General Dynamics Bags IT Services Order from Defense Intelligence Agency

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.

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