Electro Optic Systems share price edges higher on government win

What did the defence contractor announce?

| More on:
Businessman outside jumps in the air

Image source: Getty Images

Key points

  • Electro Optic Systems shares gain 1.06% to $1.91 during afternoon trade 
  • The company has been selected by the Australian government for its marine remote weapon stations 
  • It is expected that 36 units could be ordered for the Australian Army’s littoral manoeuvre vessel – medium capability program 

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price could finish the day higher following a company update.

During the first hour of market open, the defence contractor’s shares touched an intraday low of $1.85, before recovering lost ground.

At the time of writing, its shares are climbing in the green by 1.06% to $1.91.

Let’s take a look at what the company revealed to the ASX today.

Electro Optic Systems wins selection

The Electro Optic Systems share price is hovering in positive territory as investors digest the company’s latest release.

In today’s statement, Electro Optic Systems advised that it has been selected by the Australian government as the furnished equipment provider for its marine remote weapon stations (RWS).

In particular, the EOS R400 Marine (R400-M) RWS has been chosen to be supplied for the Australian Army’s littoral manoeuvre vessel – medium capability program.

Electro Optic Systems stated that the announcement coincides with its official R400-M RWS Australian launch at an event held at the INDO PACIFIC 2022 International Maritime Exposition.

The attendance comprised international naval delegations from 45 countries.

The event is used as a platform where customers and industry defence suppliers connect by promoting and selling military equipment.

The marine RWS, which is already in production for a major overseas customer, differs from the company’s Land R400 RWS. This is because certain components and surface finishes are more suitable for the highly corrosive maritime environment.

The Australian government has indicated that it could order 36 units of the company’s RWS for its program.

Electro Optic Systems share price snapshot

It has been a difficult year for Electro Optic Systems shareholders, with its share price tumbling by around 53%.

The company’s shares reached a 52-week low of $1.605 in March, before slightly shooting higher and then receding again.

On valuation grounds, Electro Optic Systems commands a market capitalisation of roughly $284.47 million.

Should you invest $1,000 in Electro Optic Systems right now?

Before you consider Electro Optic Systems, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Electro Optic Systems wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras has positions in Electro Optic Systems Holdings Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Rede arrow on a stock market chart going down.
Share Fallers

Why the Integrated Research share price is cascading 15% today

Clouds gather around Integrated Research amid latest trading update.

Read more »

Technology Shares

Droneshield share price leaps 10% amid strong Ukrainian demand

The company's anti-drone systems are employed by militaries, law enforcement and private enterprises across the world.

Read more »

Two boys lie in the grass arm wrestling.
Technology Shares

Novonix share price fights to stay in the green on Monday

Tech is leading the ASX today.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why is the Nitro Software share price rallying 5%?

Tech shares are showing signs of life again on Monday.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

Why are ASX 200 tech shares having such a stellar start to the week?

ASX 200 tech shares are outperforming the benchmark today.

Read more »

A woman wearing glasses has an uncertain look on her face as she bites her lip, she's just read some news on her phone.
Technology Shares

What’s with the Dicker Data share price today?

Shares in the hardware, software and cloud distributor are up and down today.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

3 ASX tech shares we’re sticking with: Forager

Share prices have plunged, we know. But if the business is still performing then the market will catch up sooner…

Read more »

Opinions

Here’s why I think ASX-listed Appen could be a potential takeover target

Why I think Appen could find itself in the crosshairs of private capital...

Read more »