Orbital ATK (OA) Cygnus Could Add $2.50 To The Share Price - Jefferies
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Jefferies analyst, Howard Rubel, reiterated his Buy rating on shares of Orbital-ATK (NYSE: OA) after the company finally launched its new Antares rocket.
The Cygnus capsule has 5,300 pounds of supplies for the astronauts on the International Space Station and this success builds confidence in OA's ability to design, develop and produce rockets and systems for the space market.
Each launch under the CRS-1 contract is priced in the range of $230mm but NASA typically withholds about $50 million to encourage mission success. The analyst believes there are six more launches under the current contract and investors had been discounting a complete recovery of the withholding. He went on to state "We figure this development could lift the shares by $2.50 to $3.50 per share".
EPS estimates remain unchanged for 2016 to 2018 at $5.50; $5.90; and $6.70.
The price target is also unchanged at $100.
Shares of Orbital-ATK closed at $74.41 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sprint (S) PT Raised to $4.50 at Jefferies
- Jefferies Cuts Price Target on Entergy (ETR) to $74 Following new Guidance
- Jefferies Reiterates Buy on Discover Financial Services (DFS) Following 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Corp. News
Related EntitiesJefferies & Co, S1
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!