CPI Aerostructures, Inc. (CVU) announced on March 17, 2021, that it has received a follow on order from Lockheed Martin, a security and aerospace company after which the CVUstock became green as CVU stock price pushed by 33.61% to reach $6.52 a share as of this writing. At the previous closing, CVU stock was down by 0.20% with a $4.880 per share price. Let’s deeply dive to understand the bullish sentiment.
What’s happening?
CPI Aerostructures, Inc. (CVU) mainly works for the manufacturing of structural aircraft parts for helicopters and fixed-wing aircraft in commercial and defense markets. Today Lockheed Martin awarded a follow-on order to CPI Aerostructures, Inc. (CVU) for the manufacturing of structural assemblies of newly F-16 Block 70/72 aircraft.CVU stock has received many orders in the past from Lockheed Martin but this new order is the biggest one so far making the order book more than double to $17.9 million. Deliveries are expected to occur in 2020 and 2023.
Past Developments:
CVU stock on February 18, 2021, reported that it has been awarded $2.7 million in Excelsior Jobs tax credit and $1.05 million Capital Grant for its growth and retain its headquarters in New York State.CVU is expected to invest $5.7 million for its expansion which includes new equipment, infrastructure improvement, and the addition of 85 new full-time jobs.
On February 16, 2021, CPI Aerostructures had been awarded an $8.7 million purchase order by the U.S Air Force. In connection with a purchase order, it is the responsibility of CVU to ensure the provision of structural modification kits, logistics, program management, and other desired services mentioned in the contract.
We are not done here yet as CVU also won another order from the Raytheon Missiles & Defense back in January 2021 according to which CVU will manufacture structural assemblies for the former.Deliveries are expected to start within this year.
Conclusion:
Follow on order from Lockheed Martin has made the momentum for CVU stock price to rise. Recent development by the CPI Aerostructures points to the growth of the CVU stock in the future. CVUhas succeeded in winning the confidence of Lockheed Martin and expecting to work for LMT in many years to come. Hence investors should keep an eye on this stock.
