As if we haven’t blabbed enough about what a great investment Raytheon has been, what with dividends going up 10 percent a year, new contracts being won far and wide, et al., last Thursday’s missile attack on a Syrian airfield is evidence that the momentum continues, at least in the short run.
Loren Thompson, a defense analyst at the Lexington Institute in Washington, D.C., told the Boston Herald’s Jordan Graham that the Trump administration’s decision to use long-range Tomahawk missiles against Syria sends the message that Raytheon remains a favorite of the U.S. military.
“The Tomahawk has three big advantages: It can fly a long distance, it is extremely precise and it doesn’t put U.S. pilots at risk,” Thompson told the Herald. “He (President Trump) wanted to send a signal to (Syrian President Bashar) Assad but he didn’t want to get too deeply involved in the country’s civil war.”
Citing Raytheon, Graham wrote that the Tomahawk can be “fired from a ship more than 1,000 miles away from its target, cruising not far above the ground and changing altitude based on the terrain until it hits its GPS-programmed target.”
The missile was first used more than 25 years ago, during Operation Desert Storm in Iraq in 1991. It’s been updated several times since, and costs a reported $800,000 apiece. The U.S. reportedly fired 59 of them, so… roughly a $47 million expenditure.
Raytheon shares closed Friday at $152.96, up $2.21. They’ve already risen 7.7 percent so far this year.