So while we look forward to the answer of who will land the A/F-XX contract, aerospace stock Boeing (BA) managed to land a separate win. Boeing just inked a deal with the United States Air Force for another eight MH-139A Grey Wolf helicopters, which raises the total number of helicopters Boeing is contracted to provide to 34. Investors seemed oddly displeased about this, though, as they sent Boeing shares into freefall, down nearly 3.5% in Thursday afternoon’s trading.
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The new contract for another eight Grey Wolf helicopters is valued at $173 million. Boeing will provide not only the helicopters themselves, but also training and support services for them. Once assembled, Boeing will be delivering them across the United States to several Air Force bases. The first set of helicopters are set to head to North Dakota, where they will join the fleet at Minot Air Force Base.
So far, reports note, Boeing has delivered 18 of these, including a set of 12 “low-rate initial production assets.” Boeing looks to deliver another four before the year is out, with the rest to follow. Leonardo Helicopters senior program manager Robert Beyer noted, “By building on the trusted AW139 platform, we’ve been able to deliver a versatile aircraft to the warfighter that is already demonstrating its value to the U.S. Air Force. With each new lot, we are proud to continue strengthening national security missions while supporting American manufacturing and jobs.”
No Turkish Delight Here
But not all the news was so positive. Boeing is also facing mounting concern from Turkish Airlines. Its order with Boeing may ultimately fall apart if the engine supplier, CFM International, cannot pull through. There was some progress made in discussions between Turkish Airlines and CFM, reports noted, but it may not be enough to matter.
In fact, reports noted, Turkish Airlines may end up moving that business to Airbus (EADSY) instead. Ahmet Bolat, Turkish Airlines Chairman of the Board, noted, “If CFM continues its stance, we’ll change to Airbus. With Airbus I have choices.”
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 53.68% rally in its share price over the past year, the average BA price target of $256.80 per share implies 17.61% upside potential.
