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Force Protection Inc. (FRPT) Announces $92 Million Contract and Receives “Buy” Rating from Major Investment Bank

Force Protection was recently awarded a $92 million sustainment contract for MRAPs and expects the work to be completed by November of next year. The company’s revenue is projected to reach $130 million from ongoing field work for its fleet of Cougars, Buffalos and MRAPs in 2008.

The company also indicated that its Cougar production in October was 195, and approximately 12 buffalos, which exceeded the 169 delivery goal. Reports have hinted that the JV is scheduled to deliver a little more than 800 vehicles in the fourth quarter. Meeting this mark would be enough to meet or pass expectations.

The investment bank who completed the report stated, “Our $32 price target is based on the shares trading at 23x our 2008 EPS estimate of $1.40. Risks to achieving this target include inability to obtain supplies assumed in the ramp, funding for the MRAP program and potential reduction in forces in Iraq.”

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