Boeing (NYSE:BA) has secured a multi-year contract with the U.S. Army and international customers, including Australia. Per the contract, the leading aerospace company will build 184 AH-64E Apache helicopters.
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Boeing said that, including this $1.9 billion award, the total current funded value of the contract reached $2.1 billion. Moreover, it can increase to over $3.8 billion with future obligations.
Of the 184 attack helicopters, the U.S. Army will get 115, along with a provision to procure an additional 15 Apaches. The company said that the additional 54 aircraft would be delivered to partner nations as part of Foreign Military Sales. Boeing has delivered 244 Apaches to the Army under the first multi-year contract signed in 2017.
The company is hitting all the right notes this year. Boeing announced earlier that Saudi Arabian Airlines (SAUDIA) plans to grow its long-haul fleet with Boeing’s 49 787 Dreamliners. This followed its strong revenues for Q4 on the back of higher deliveries and increased demand.
Boeing delivered 480 commercial airplanes in 2022. In addition, it recorded 808 net orders and had a backlog of $404 billion. The company also narrowed down its losses, which is encouraging.
The recovery in the airline sector following the COVID slump and the expansion of the defense budget in light of the ongoing war in Europe are driving the top line for Boeing.
What’s the Prediction for Boeing Stock?
Boeing stock has nine Buys and one Hold recommendation for a Strong Buy consensus rating. Further, BA stock has gained about 39% in the past six months. Moreover, analysts’ average price target of $241.50 implies a further upside potential of 20.12%.
