Market Weekly: Sep 18 Sep 22 2017

#11812
Helmholtz Watson
Participant

[quote=”Assistanc3″ post=1532]U.S. defense contractor Northrop Grumman Corp ($NOC) is poised to announce a purchase of missile and rocket maker Orbital ATK Inc ($OA) as soon as Monday, a person familiar with the transaction said on Sunday.

The deal would come as the firing of missiles by North Korea in recent months has focused attention on missile defense systems.

With Orbital’s stock market value of $6.3 billion and $1.4 billion of long-term debt, the deal’s final value will likely exceed $7.7 billion.[/quote]

Analysts said the deal could help Northrop beat out Boeing $BA to win Air Force’s Ground Based Strategic Deterrent contract to replace the aging Boeing Minuteman III intercontinental ballistic missile system.

Northrop shares jumped 2.1% to 272.57 Northrop retook its 50-day moving average on Friday. Lockheed shares edged up 0.4% to 303.54 and General Dynamics rose 1.5% to 201.29.