Shares of armored vehicle maker Force Protection (FRPT) are up 38 cents, or 9%, at $4.61 and were earlier up almost 10% after Benchmark analyst Josephine Millward raised her rating on the stock to “Buy” from “Hold” with a $6 price target, arguing that the company’s sales of its “Cougar” and “Buffalo” armored vehicles could be much higher by unit count this year considering deals in the pipeline and that management has hinted at.
The company could also see $200 million in additional retrofit revenue by putting parts from Oshkosh (OSK) into its vehicles being used in Afghanistan.
Millward’s target represents a multiple of six times enterprise value relative to projected Ebitda, given $2 per share in cash. She notes that is below the nine times multiple for comparable miltary supper stocks.
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