17.12.2014 - Cubic increases part of the military products
Cubic company announced its intention to purchase the manufacturer of military communications equipment DTech. The transaction value is estimated at 114.5 million dollars. The recent adoption of the Pentagon's budget for 2015 has helped to increase analysts' expectations with respect to sales of military technology and equipment. Let us remind that the corporation Cubic in 2014 fiscal year received 57% of the 1.4 billion of revenue from military contracts and the acquisition will increase the company's market position in military equipment. Given the confrontation between the West and Russia, we expect the growth of military spending, and recommend buying shares of a company with growth potential to 40-45% for the year.