While much of Wall Street is
displaying nervousness about a clash with Syria, Tomahawk cruise missile maker Raytheon (
RTN) could receive a boost to its bottom line from the potential conflict.
That’s because the White House has made clear an attack on Syria would be very limited in nature, likely relying heavily on the cruise missiles that Raytheon sells to the U.S. for about $1 million a pop.
According to Politico, the war drums have raised calls in Washington for the Pentagon to buy more than the 196 Tomahawk missiles it purchases each year, which is just enough to maintain the supply chain.
“There are many of us who have been concerned for years about maintaining our missile capabilities,” Rep. Rob Bishop, a Republican member of the House Armed Services Committee, told the publication.
Waltham, Mass.-based Raytheon saw its stock pop to a fresh 52-week high of $77.93 on Monday as it became clear President Obama was preparing to launch an aerial assault against Damascus. However, the defense contractor’s shares have eased off those levels, perhaps in response to signs an attack might not be imminent.
