General Motors Co.’s (GM) defense subsidiary has won a $214.3 million contract to produce and build the U.S. army’s new infantry squad vehicle (ISV).
The U.S. army contract is for the order of 649 of the all-terrain troop carriers, GM said in a statement on June 27. The automaker added that the approved army acquisition would allow for the production of 2,065 vehicles.
The ISV can transport a nine-soldier infantry squad moving throughout the battlefield, the Detroit-based company said. The troop carrier is light enough to be sling loaded from a UH-60 Blackhawk helicopter and compact enough to fit inside a CH-47 Chinook helicopter for air transportability. All ISV models will be equipped with an occupant and a cargo superstructure powered by a 186-horsepower, 2.8L Duramax turbo-diesel engine, and six-speed automatic transmission.
“Winning this army award is well-deserved recognition for the hard work and dedication of our GM Defense team and their production of a fantastic vehicle,” said GM Defense president David Albritton. “We are confident the GMD ISV will meet and exceed all of our customers’ requirements.”
Shares in GM dropped 3% to $24.46 in U.S. trading on Friday, taking its year-to-date decline to 33%.
JPMorgan analyst Ryan Brinkman earlier this month raised GM’s price target to $33 from $29 and reiterated a Buy rating on the stock, amid mounting evidence that U.S. new vehicle sales and used vehicle pricing are recovering in May and June nearly as fast they plunged in March and April.
Brinkman now expects 2020 U.S. light vehicle car sales of 14.5 million, up from 13.5 million in a previous estimate.
Overall, Wall Street analysts have a cautiously optimistic outlook on GM’s stock. The Moderate Buy consensus is based on 7 Buys, 3 Holds and 1 Sell. The $29 average price target implies 19% upside potential in the shares in the coming year. (See GM stock analysis on TipRanks).
Related News:
Nvidia, Mercedes Partner On Autonomous Vehicle Venture; A ‘Match Made In Auto Heaven’ Says Oppenheimer
Tesla Said To Have Won Chinese Nod To Build Model 3 With LFP Batteries
Can Tesla Provide the Million Mile EV Battery? Top Analyst Weighs In
