Science, technology, and engineering solutions provider KBR (KBR) has won a services contract for the PATRIOT missile system from the NATO Support and Procurement Agency (NSPA). This includes analytical, engineering, technical, programmatic, and logistics services.
The PATRIOT missile system, in use by a number of NATO countries globally, is an advanced surface-to-air guided air and missile defense system.
KBR Government Solutions President Byron Bright said, “We have a long history supporting NSPA and we are proud to continue this trusted relationship.” (See KBR stock chart on TipRanks)
Bright added, “KBR’s expertise in cutting-edge research will assist NSPA in responding to today’s dynamic threat environment in multiple theatres worldwide.”
The contract is for a period of three years with the option of two additional years. The scope of KBR’s deliverables includes systems engineering, program management, modeling and simulation, production, logistics, and deployment, among other services.
Notably, the company has provided advisory and assistance services for the PATRIOT system for over 40 years.
Recently, Cowen & Co. Analyst Gautam Khanna reiterated a Buy rating on the stock and increased the price target to $46 (20.5% upside potential) from $41.
Noting the company’s Q1 performance as in-line, Khanna commented, “Government Services underlying orders were better than optics of the reported book/bill. The stock is apt to grind higher as KBR’s premium growth is recognized by investors.”
Based on 6 Buys and 1 Hold, consensus on the Street is a Strong Buy. The average KBR analyst price target of $44.57 implies 16.8% upside potential. Shares are up 54.5% over the past year.