Raytheon Co. (RTN) bagged a $77 million contract from the US Air Force for building missiles for Korea and Taiwan. According to terms of the contract, the company will produce AGM-65D and AGM-65G2 infrared-guided Maverick air-to-surface missiles for the two Asian nations.

Raytheon will manufacture and provide life-cycle support for more than 250 new missiles. The company began producing the missiles’ infrared guidance and control sections in November 2008.

The company’s AGM-65 Maverick is a class of air-to-ground tactical missile used by US Air Force, Navy, Marine Corps and 33 international customers. Its AGM-65D has a 125-pound warhead with a forward-firing, conical-shaped charge for armor penetrations. Raytheon’s AGM-65G2 employs a 300-pound blast fragmentation/penetrator warhead that was developed for maximum effectiveness against larger, reinforced targets. The company has manufactured more than 69,000 AGM-65 missiles till date.

Raytheon is the one of the largest aerospace and defense companies in the U.S., with a well-diversified line of military products including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems and technical services. We maintain our market outperform recommendation on the shares.

Read the full analyst report on “RTN”
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