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Berger: General Dynamics wins battle for $17.6 Billion deal
After winning a USD 17.6 Billion US Navy defense contract, General Dynamics Corp., has positioned itself for a rally in the market. Serge Berger, better known as The Steady Trader, foresees the culmination of this deal pushing the company’s stock higher.
The contract awards General Dynamics and its major subcontractor, Huntington Ingalls Industries Inc., the construction of 10 navy Virginia-class submarines. The design of the new submarines will reduce operating costs as fewer maintenance visits will be required. It took 20 months for the Navy and General Dynamics to negotiate the terms of the deal. The completion of the contract has already impacted investor’s outlook on the company. Goldman Sachs upgraded the stock’s rating from ‘sell’ to ‘neutral’ on Friday.
Over the last three months, the company’s stock has consolidated forming a bull flag pattern. This typically indicates further upward momentum for a stock, which is why Serge is looking to buy the stock at USD 112 with an upside target of USD 118. A stop can be placed at USD 109.70
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01:25 minutes
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