Force Protection rises on vehicle production news
Force Protection, Inc. (Nasdaq: FRPT) shares are rising after the maker of armored vehicles announced that its joint venture with General Dynamics Land Systems (NYSE: GD) broke monthly vehicle production records in December.
"The strength of the Force Dynamics enterprise was again evident in December, which was a shortened production month due to the holidays," COO Raymond Pollard said in a statement.
The two companies’ joint venture, Force Dynamics LLC, produced 343 mine-resistant ambush protected (MRAP) vehicles during December. To date, the venture has produced more than 1,360 Cougar MRAP vehicles.
Josephine Millward, an analyst for the investment banking firm Stanford Financial, is not swayed by Force Protection’s latest news and is maintaining a “sell” rating. However, Millward said she is reviewing her 12-month price target on the company since Force Protection shares already surpassed $5.
“They’ve had this joint venture forever. The problem with Force Protection is their overly optimistic expectations for next year,” Millward said. “They’re highly exposed to the MRAP program and demand is expected to decrease in 2008. Their problem is lack of a sustainable long-term business model.”
In afternoon trading, FRPT shares are up 10.26%, or $0.48, at $5.16. Over the last 52 weeks, shares have ranged from $3.89 to $31.16.
