Boeing Wins $20 Billion Contract for Sixth-Generation Fighter
Boeing's (BA) stock received attention from investors on Wednesday as the company won a $20 billion-plus contract to design, build and deliver its F/A-XX sixth-generation fighter for the US Navy. The contract is valued at more than $20 billion for the full-scale development phase and includes multiple test aircraft.
JPMorgan maintained an 'Overweight' rating on Boeing's stock and a price target of $290, calling the win 'truly important' for the company. The analyst stated that Boeing's selection over Northrop Grumman was not a surprise and that the company has a lock on sixth-generation fighters.
William Blair kept its 'Outperform' rating on Boeing's stock, saying the recent contract wins point to an improvement in the company's defense business. The firm expects Boeing to provide commentary on its previously announced $10 billion free cash flow target during the company's third-quarter earnings call.