We are feeling a bit of sticker shock, at 1.3 times sales.
Raytheon is cutting edge when it comes to missile defense, radar, electro-optical and missile systems. They are near the top of the industry in terms of sales growth. Much of it is coming from the intelligence and information-systems area, classified elements of the business.
We don't expect the move by Pratt to go unanswered and it could open the door for more ... competition that would cannibalize Pratt's own spare parts business.