) received a $54.8 million order from Electronic Data Systems. Needham raised its rating on InVision shares to buy from hold.
Analyst Jim Ricchiuti says the order and a three-year agreement from Homeland Security marks further evidence of the U.S. government's intent to replace standalone explosive detection system machines in major airports with a system integrated with baggage handling. He believes InVision will be a prime beneficiary of the process, which will take years to complete. Ricchiuti notes the company's total backlog as of the end of June was $118 million, with the EDS portion at $70 million. Separately, Ricchiuti says InVision's strong balance sheet should support the stock at its current level. He raised his $3.40 2003 EPS estimate to $3.47, and sees EPS of $1.75 in 2004. The analyst has a $28 price target on the stock.