Premium industrial goods company United Technologies Corporation’s (UTX) Sikorsky helicopter segment has reportedly put in bids for a $3 billion military tender of Poland. The tender involves the supply of 70 helicopters to the Polish military.
Notably, in Oct 2014, United Technologies refused to bid for the contract until its terms were altered in favor of its conditions. However, recently the Polish government claimed that United Technologies, Airbus and Finmeccanica's AgustaWestland has joined the fray for the tender. The deal is anticipated to be finalized by the second phase of 2015.
If United Technologies can finally procure the contract, its business goodwill would see a significant improvement in the global forum. By offering 70 helicopters, Sikorsky would help modernize the military amenities of Poland in the near future. In order to meet the requisites of NATO’s defensive outlay target in 2016, the government of Poland has decided to deploy $41 billion for modernization of its security amenities by 2022.
Winning the Polish defense helicopter contract would surely trigger the organic growth trajectory of United Technologies. Such deals would help the company generate strong results in the upcoming quarters.
With a market capitalization of $104.84 billion, United Technologies currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Federal Signal Corp. (FSS), Icahn Enterprises, L.P. (IEP) and Swire Pacific Ltd. (SWRAY). While Federal Signal currently sports a Zacks Rank #1 (Strong Buy), both Icahn Enterprises and Swire Pacific hold a Zacks Rank #2 (Buy).
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