Raytheon’s Collins Aerospace selected by NASA for space arming contract (NYSE: RTX)

Raytheon Technologies (NYSE:RTX) said Wednesday its Collins Aerospace business is selected to produce NASA’s next-generation spacesuitas the agency pushes to replace decades-old hardware.

NASA said the provision of suits and related services maybe valued at a total of $3.5 billion in a series of missions over the decades that followed.

“The next-generation spacesuit is lighter, more modular, fits better and is easier to adapt,” said Dan Burbank, senior engineering colleague at Collins Aerospace.

NASA has also selected Axiom Space Inc., a company that is organizing private flights to the International Space Station, and agency officials said having two companies calling for the suits would provide the backup plan and will help reduce costs when two teams compete.

Raytheon Technologies (RTX) trades at a full valuation relative to its own history and at a sizable premium relative to its peers, Envision Research wrote in a note. Analysis recently published on Seeking Alpha.