Aerospace and defense company General Dynamics Corporation (NYSE: GD) recently revealed that its subsidiary General Dynamics Information Technology (GDIT) has secured a $4.5 billion User Facing and Data Center Services (UDS) contract from the National Geospatial-Intelligence Agency (NGA). The tenure of the contract is for 10 years.
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Following the news, shares of the company declined marginally to close at $230.23 in Friday’s trading session.
Details of the Deal
The terms of the contract entail GDIT providing hybrid cloud services to NGA and its mission partners, which includes, among others, commercial clouds and data center services, IT design services, engineering, and implementation capabilities.
Further, the company will support the IT infrastructure at NGA’s new campus in St. Louis, Next NGA West. Notably, GDIT enhanced its presence in the region with the opening of its flagship facility at the Cortex in December 2021
Management Commentary
President of GDIT, Amy Gilliland, said: “We are proud of our longstanding partnership with NGA and look forward to this opportunity to continue to leverage our portfolio of innovative technologies and services to advance the geospatial mission.”
Wall Street’s Take
Recently, Vertical Research analyst Robert Stallard reiterated a Buy rating on the stock. The analyst, however, raised the price target from $251 to $273, which implies upside potential of 18.6% from current levels.
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on seven Buys and three Holds. The average General Dynamics stock prediction of $264 implies the stock has upside potential of 14.7% from current levels. Shares have gained about 30% over the past year.
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