VEEM (ASX:VEE) is expected to benefit from its AU$14 million placement and new defense opportunity disclosed on Tuesday, said Euroz Hartleys in a Friday note.

The company on Tuesday completed a AU$14 million placement through the issue of 10.8 million new shares at AU$1.30 apiece and also secured a nine-year manufacturing license agreement with US defense and security firm Northrop Grumman, with an initial value of $33 million.

The research firm believes that these developments are likely to result in earnings upgrades.

The research firm said that it acted as joint lead manager for the placement, for which it will earn fees.

Euroz Hartleys has maintained a speculative buy rating with a price target of AU$1.85, up from AU$1.40.

The company's shares fell past 4% on market close.