Boeing (NYSE:BA) is expected to supply Germany with 60 Chinook helicopters in a potential order worth around $8.7 billion (€8 billion). This news has been received positively by investors, leading to an upward trend in the aircraft manufacturer’s stock during Thursday’s early trading session.
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The purchase order is anticipated to consist of CH-47 heavy-lift helicopters worth €6.27 billion, €700 million worth of service, and another €750 million worth of infrastructure. Furthermore, the German government might spend another €240 million on national contracts.
It is worth mentioning that last year, the German government disclosed intentions to replace its CH-53 fleet with BA’s heavy-lift helicopters. The decision was driven by geopolitical considerations, particularly in light of Russia’s invasion of Ukraine. This ultimately led to an increase in the defense budget to strengthen its military capabilities and modernize its helicopter fleet.
What is the Future of BA Stock?
Boeing has experienced strong demand for its aircraft of late. The company’s recent delivery report for May reflected solid delivery performance and a rising backlog. As of May 31, 2023, the company reported 206 deliveries and received 223 gross orders, indicating a positive trend in customer demand. Furthermore, at the Paris Air Show held last month, the company was successful in grabbing orders from several other airlines.
These recent developments bode well ahead of BA’s Q2 earnings report, scheduled for release on July 26.
Of the 11 top Wall Street analysts covering Boeing stock, seven rated it a Buy, three assigned a Hold, and one analyst suggested a Sell rating in the past three months. Overall, BA stock has a Moderate Buy consensus rating. The average price target stands at $232, implying an 8.76% upside potential.
It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations. Moreover, each analyst has a remarkable success rate.
