NEW YORK, Sept 5 (Reuters) - Shares of Raytheon Co look cheap and could rise as the U.S. defense contractor overcomes some short term worries about lower government spending and a canceled British contract, Barron's reported in its Sept. 6 edition.
Headlines such as the U.S. military's withdrawal from combat in Iraq, and a decision by Britain to cancel a big million electronic-systems contract with Raytheon, have weighed on the company's shares, the report said.
However, it argued, Raytheon's prospects are better than peers partly because its broad business base is tied in large part to upgrading existing equipment. It has a $36 billion order backlog, Barron's said.
'Around $45, the shares look tempting to some investors,' the article said, noting Taiwan and Japan are among those countries that may upgrade missile-defense systems in coming years.
Raytheon shares closed at $45.66 on Friday. They are off about 6 percent from the British government's July announcement that it ended the 750 million pound ($1.16 billion) border security contract with a Raytheon-led consortium, saying it had no confidence in the company.
(Reporting by Jonathan Spicer; Editing by Marguerita Choy) Keywords: RAYTHEON/SHARES (jonathan.spicer@thomsonreuters.com; +1-646-223-6253; Reuters Messaging: jonathan.spicer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Headlines such as the U.S. military's withdrawal from combat in Iraq, and a decision by Britain to cancel a big million electronic-systems contract with Raytheon, have weighed on the company's shares, the report said.
However, it argued, Raytheon's prospects are better than peers partly because its broad business base is tied in large part to upgrading existing equipment. It has a $36 billion order backlog, Barron's said.
'Around $45, the shares look tempting to some investors,' the article said, noting Taiwan and Japan are among those countries that may upgrade missile-defense systems in coming years.
Raytheon shares closed at $45.66 on Friday. They are off about 6 percent from the British government's July announcement that it ended the 750 million pound ($1.16 billion) border security contract with a Raytheon-led consortium, saying it had no confidence in the company.
(Reporting by Jonathan Spicer; Editing by Marguerita Choy) Keywords: RAYTHEON/SHARES (jonathan.spicer@thomsonreuters.com; +1-646-223-6253; Reuters Messaging: jonathan.spicer.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.