Shares of Turkey’s defense contractor soared to the highest level in six months after announcing almost $2 billion in orders from Turkish Aerospace Industries.
(Bloomberg) — Shares of Turkey’s defense contractor soared to the highest level in six months after announcing almost $2 billion in orders from Turkish Aerospace Industries.
Aselsan shares climbed as much as 9.6% before trading 7.5% higher as of 3:22 p.m. in Istanbul, marking the biggest gain since January 4. The stock’s gains on Thursday also contributed the most to Turkey’s benchmark Borsa Istanbul 100 Index’s advance on the day.
The announced orders point to a “significant rise” in Aselsan’s backlog, said Serdar Pazi, research group director at Global Securities in Istanbul. “The deal also has the potential to trigger upgrades in analysts’ price-targets as the stock previously didn’t offer much upside potential above inflation and riskless return,” he said.
The defense contractor Aselsan signed two contracts with Turkish Aerospace Industries, or Tusas, for aircraft modernization that are worth $1.99 billion in total, according to a company filing to the stock exchange. Deliveries will be made between 2023-2033, the statement said.
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