Elbit Systems Ltd. (ESLT) advanced the most in almost seven weeks as Israel’s largest non-governmental defense company got $315 million in orders from the country’s Ministry of Defense.
The shares increased 2.9 percent, the biggest intraday advance since Nov. 13, to 148.8 shekels as of 2:44 p.m. in Tel Aviv. The company, which depends on its home country for 16 percent of revenue, has lost 4.9 percent this year compared with a 39 percent gain for the S&P Aerospace & Defense Index. (S5AERO)
“This is undoubtedly positive news and supports our view that back-orders from the Israel Defense Forces will come to fruition in 2013,” said Ella Fried, a senior analyst at the capital markets division of Tel Aviv-based Bank Leumi Le-Israel. (LUMI) She has an outperform rating on the stock.
The combined orders include sales of unmanned systems, electronic warfare and avionics, the company said in a statement to the Tel Aviv Stock Exchange. The company’s backlog of orders was $5.53 billion as of Sept. 30, compared with $5.47 billion on June 30 and $5.45 billion on March 31.
Elbit agreed to supply battle management systems for helicopters and virtual training for the Israeli Air Force’s fighter aircraft in a $75 million, six-year deal. The company will supply drones and maintain them for eight years in a $90 million order. The company will also provide $90 million in systems for F-15 and F-16 fighter aircraft and for the navy’s missile vessels over a four-year duration.
To contact the editor responsible for this story: Alaa Shahine at email@example.com