Leonardo DRS, Inc. (NASDAQ:DRS), a defense technology company, said Wednesday it signed a Memorandum of Understanding with UAE-based Space42 to collaborate on next-generation national security mission systems.
Leonardo DRS, Space42 Set Collaboration Framework
Under the MoU, Leonardo DRS will provide C5ISR mission systems expertise, while Space42 will contribute secure, AI-enabled satellite communications and Beyond Line of Sight connectivity.
The companies will explore integrating Leonardo DRS’s tactical computing, vehicle electronics and situational-awareness technologies with Space42’s infrastructure.
The collaboration will support sovereign satellite communications capabilities for the UAE.
“This MoU marks a significant step forward in our commitment to supporting U.A.E. national security priorities with proven, advanced integrated capabilities that enable mission success in today’s evolving threat landscape,” said Denny Crumley, Senior Vice President & General Manager of the Leonardo DRS Land Electronics business unit.
SGT STOUT Defeats Small UAS Threats
Separately, Leonardo DRS said its SGT STOUT M-SHORAD Mission Equipment Package defeated Group 1–2 small unmanned aircraft system threats in a U.S. Government test using software updates without new hardware.
Leonardo DRS originally designed the system to counter larger Group 3 and above UAS, as well as fixed-wing and rotary-wing threats. The company has already fielded several hundred SGT STOUT systems.
Leonardo DRS said SGT STOUT’s modular, open architecture can integrate passive detection, AI-enabled decision aids, edge computing and evolving effectors without a full system redesign.
Technical Analysis
DRS is currently trading at $44.66, which is approximately 1.3% below its 20-day simple moving average (SMA) of $45.72. The stock has shown a 12-month performance increase of 6.66%, indicating a moderate upward trend over the past year.
The Relative Strength Index (RSI) is currently at 45.05, suggesting that the stock is in a neutral zone, neither overbought nor oversold. This indicates that there may be room for upward movement if buying pressure increases.
Additionally, the 50-day SMA is above the 200-day SMA, indicating a bullish trend, often referred to as a golden cross.
- Key Resistance: $45.72 — This level aligns with the 20-day SMA, which has historically acted as a barrier for upward price movement.
- Key Support: $41.59 — This level corresponds to the 200-day SMA, providing a strong foundation for price stability.
Leonardo DRS Analyst Outlook
The stock carries a Buy rating with an average price forecast of $54.00. Recent analyst moves include:
- JP Morgan: Neutral (Raises Target to $53.00) (July 31)
- Canaccord Genuity: Buy (Raises Target to $54.00) (May 6)
- Bank of America Securities: Buy (Raises Target to $55.00) (March 25)
DRS Stock Price Activity: Leonardo DRS shares closed 0.87% down at $44.66 on Tuesday, according to Benzinga Pro data.
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