Boeing Soars 3.0% on $20 Billion Defense Contract Win
Boeing's stock surged 3.0% in pre-open trading on Thursday, reaching $193.41, as investors reacted to a major defense contract win.
The aerospace giant was selected by the Pentagon to develop the U.S. Navy's next-generation carrier-based strike fighter, the F/A-XX, under a contract valued at more than $20 billion.
This marks Boeing's second consecutive sixth-generation fighter program win and positions the company at the center of the Navy's Next Generation Air Dominance initiative, which is expected to grow to hundreds of billions of dollars over its full lifecycle.
The award was reinforced by supportive analyst commentary from Susquehanna's Charles Minervino, who reiterated a Buy rating with a $285 price target, and UBS, which maintained its Buy rating and $275 target.