The old saying goes: War is good business. Raytheon (NYSE:RTX) proved as much as its share price ticked up slightly in Wednesday’s afternoon trading. Reports emerged that the U.S. may be ready to supply Ukraine with a Patriot missile system, and that’s going to put a fresh order in Raytheon’s lap.
The move to supply Ukraine with a Patriot system may be just days away. Once President Biden and Secretary of Defense Lloyd Austin sign off on the final orders, the process will begin, and Ukraine will be in line to receive a new defense system designed to repel both air-based and missile attacks.
Ukraine has been eager to land one of the missile defense systems for the last few months. However, the U.S. has been hesitant to actually send one in. Officials noted that training Ukrainian crews on the highly-complex systems would be a challenge. However, given the sheer volume of missile fire coming out of Russia and aimed at Ukraine, having a reliable means to defend against it is proving increasingly vital.
Raytheon isn’t the only recent beneficiary of the war, however. Lockheed Martin (NYSE:LMT) has a hand in the Patriot missile system’s production. That gives it a piece of the benefit as well. Beyond Ukraine, Lockheed Martin also landed a hefty purchase order from Germany. The German government put up an order for 35 new F-35 Lightning II planes.
Meanwhile, the analyst community agrees overwhelmingly that war is good business, especially in this war. Consensus opinion considers Raytheon a Moderate Buy. Thanks to Raytheon’s average price target of $104.42, analysts expect 4.57% upside potential. Meanwhile, Lockheed Martin is considered a Hold, with upside potential of 0.2%.
