1919 ET - Morgans has increased confidence in Veem's ability to secure more defense contracts following a nine-year manufacturing licensing agreement with Northrop Grumman. Veem will supply Northrop with a range of pre-determined parts to its Virginia Class submarines. Analyst Alexander Lu says this deal marks a major milestone for Veem. "While earnings may be volatile in the near term, we believe the opportunities in defense, propulsion and gyros provide strong growth potential over the long term," Morgans says. Veem's share price has more than doubled from its June low to A$1.405. Morgans downgrades the stock to accumulate, from buy, following that rally but raises its price target by 28% to A$1.66. "We view further contract announcements as potential positive catalysts for the stock." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

October 07, 2025 19:19 ET (23:19 GMT)

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