Aerospace stock Boeing (BA) may have a real winner on its hands with the MQ-28 Ghost Bat system, which recently landed a slot in the Bundeswehr’s procurement cycles for collaborative combat aircraft. Boeing is teaming up with Rheinmetall (RNMBY) to bring the unit out of Australia, and into Germany. This move was a welcome sight for investors, as shares surged up over 3% in Tuesday afternoon’s trading.
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So far, the Ghost Bat system has run a lot of test flights, and performed capably. Over 150 test flights have been run so far, reports note, and the Royal Australian Air Force looks to put it into use. The Ghost Bat has several use cases, starting with electronic warfare and reconnaissance efforts to providing “critical combat mass in highly contested airspace,” reports note.
Rheinmetall, meanwhile, comes in to serve as system manager for the Ghost Bat in Germany, which will allow the integration of the Ghost Bat into current Bundeswehr operations. Rheinmetall CEO Armin Papperger noted, “As a system integrator, we ensure that integration, operation, and further development come from a single source while simultaneously strengthening industrial value creation in the form of an industrial hub in Germany and Europe. We see revenue potential for Rheinmetall in the range of three-digit millions of euros.”
Throwing Some Grant Money Around
Meanwhile, Boeing put a little contribution behind the Jackie Joyner-Kersee Foundation, offering up a $100,000 grant for the program. The foundation plans to use the money to augment its Winning in Life program, which actually provides several points at once.
The Winning in Life program covers workforce readiness skills, as well as leadership development, goal setting behaviors, social-emotional learning and more. Boeing’s support for this, meanwhile, should provide it some positive word of mouth at a time when some are probably still looking at Boeing aircraft and wondering what part will fall off next.
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 and one Hold assigned in the past three months, as indicated by the graphic below. After a 12.51% rally in its share price over the past year, the average BA price target of $280.27 per share implies 41.34% upside potential.
