Boeing (BA) has won a Foreign Military Sales contract worth $578 million for 14 extended-range Chinook helicopters to be supplied to the UK Royal Air Force (RAF).
Boeing will deliver 14 H-47 extended-range Chinook helicopters to UK’s air force, according to the contract approved by the U.S. Department of State. With the extended range of Chinook, RAF will be better equipped to execute domestic and international heavy-lift missions. (See BA stock chart on TipRanks)
Boeing VP Andy Builta commented, “These Chinooks are the future of heavy-lift, built on an existing foundation of advanced capability and life cycle affordability.
He added, “This contract for Block II aircraft sets the stage for the next 60 years of Chinook excellence on the battlefield.” Britain becomes the first international operator of a Block II Chinook. Further, deliveries are expected to start in 2026.
Jefferies analyst Sheila Kahyaoglu recently maintained a Buy rating on the stock. Kahyaoglu commented, “Complete redesigns such as electric powered engines will not be ready until the 2040s. As such, the ultimate issue with the next near-term aircraft could be a life span of 10-15 years rather than 30 years given the technology will be considered interim.”
Overall, the stock has a Moderate Buy consensus rating based on 8 Buys and 7 Holds. The average Boeing analyst price target of $270 implies 10.8% upside potential from current levels. Shares have jumped 30% over the past year.
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