Great news landed at aerospace stock Boeing (BA) today, as word of a big new contract with the United States Air Force emerged. That news was enough to fuel a hefty gain in Boeing shares, which investors drove up nearly 3% in Wednesday afternoon’s trading.
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The contract calls for Boeing to deliver 15 new KC-46A Pegasus aerial refueling tankers, and for this, Boeing would receive $2.47 billion. This is a slight hike in prices; last year, Boeing landed a similar contract from the Air Force, but the contract was valued at $2.38 billion for the same 15 tankers.
This brings the Air Force up to a total of 98 tankers received since 2019, though the process has not always been simple. In fact, the KC-46A has run into several problems, including defects, debris from “foreign objects” found in the planes, and issues of overall supplier quality. Still, something must have improved, as the Air Force is ordering more, and the defense minister of Israel revealed plans to buy two of the tankers as well, valued at about $500 million.
Amazing Feat at the Dubai Airshow
Meanwhile, one last item emerged from the recently concluded Dubai Airshow, and it featured the Boeing 777X. Recent footage emerged of the jetliner performing a takeoff at what looked like an impossible angle, a nearly vertical takeoff.
It did not seem precisely vertical. There was a visible angle to the ascent which precluded the possibility of a straight-up-and-down lift pattern. But it was still much closer to 180 degrees than a jetliner would ever be expected to go, a testament to both plane and pilot. And, if that were not enough, remember that this is currently considered the world’s largest twin-engine jet.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 13 Buys, two Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 19.71% rally in its share price over the past year, the average BA price target of $249.07 per share implies 32.69% upside potential.
