Raytheon Company (RTN) with a view to bolster its capabilities and opportunities in the non-kinetic effects products market has acquired related business assets of Ktech Corporation. Located in Albuquerque, New Mexico, Ktech will become part of Raytheon Company's Missile Systems business.
Ktech is a leader in pulsed power systems engineering. The company's compact pulsed power systems, combined with its high efficiency magnetron technology, will enable easy integration of energy weapons on combat platforms.
Ktech has also made a mark in the development of linear accelerator technology for government and commercial applications. The company brings its high power microwave, compact pulsed power system design, and RF and particle code simulation capabilities to Raytheon, as well as extensive experience in explosive pulsed power, diagnostics and effects testing.
Raytheon is one of the best-positioned companies among the large-cap defense players based on its non-platform-centric focus. Looking forward, the company enjoys strong order bookings and order backlog, an improving balance sheet, growing cash flow, and operational improvements.
This, however, gets offset by apprehensions over future magnitude of the U.S. defense budget, the fate of high-cost programs, risks related to key project executions and order cancellations. Thus, in the absence of any positive triggers, the company at present retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
Based in Massachusetts, Raytheon Company deals with a 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. Major competitors of the company are Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
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