Those who remember the Top Gun video game from 1987 know that one of the hardest parts was the mid-air refueling mini-game. Aerospace stock Boeing (BA) may have figured out a way to fix this using a drone aircraft known as the MQ-25A. That aircraft recently underwent a test flight in conjunction with the United States Navy, and the test flight was considered a success. This was not enough for Boeing shareholders, who sent shares down fractionally in Monday afternoon’s trading.
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Over the course of two hours, the MQ-25A Stingray taxied down a runway, took off, flew and landed once again. It also responded to commands from the Unmanned Carrier Aviation Mission Control System MD-5 Ground Control Station, which brought the aircraft that much closer to carrier service. Currently, mid-air refueling is done by F/A-18 Super Hornets, reports note. With the MQ-25A, though, they can once again become pure strike fighters.
Overseer for the Program Executive Office for Unmanned Aviation and Strike Weapons, Rear Admiral Tony Rossi, noted, “The first flight of the MQ-25A is a landmark achievement for the Navy-Boeing team and a critical step toward the future of the carrier air wing. This flight demonstrates our progress in delivering a carrier-based refueling capability that will significantly extend the reach and lethality of our fleet.”
Aftermarket Impact Minimal
Meanwhile, reports also note that the Iran War is having little impact on Boeing’s aftermarket operations. There was a possibility that the Iran issue would be a drag on commercial aircraft operations. But right now, no one is seeing any signs that that is the case.
CEO Kelly Ortberg noted, “I’m not too worried about it right now. Obviously, the big question is how long does the war last? And I can’t answer that. We’ll just have to watch it and manage as things happen.” Given the comparatively short nature of the conflict so far, and the fact that it has stopped and started again in that short time frame, it is really too early to measure impact as yet.
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 15 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 27.5% rally in its share price over the past year, the average BA price target of $273.77 per share implies 18.35% upside potential.
