Orbital ATK (OA) Cygnus Could Add $2.50 To The Share Price - Jefferies

October 18, 2016 10:15 AM EDT
Get Alerts OA Hot Sheet
Price: $88.46 +0.35%

Rating Summary:
    10 Buy, 1 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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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.

For an analyst ratings summary and ratings history on Orbital-ATK click here. For more ratings news on Orbital-ATK click here.

Shares of Orbital-ATK closed at $74.41 yesterday.

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