Electro Optic Systems share price edges higher on government win

Businessman outside jumps in the airBusinessman outside jumps in the air

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.

The post Electro Optic Systems share price edges higher on government win appeared first on The Motley Fool Australia.

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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.

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