Aerospace company Boeing (BA) is apparently getting into the munitions business. The U.S. Air Force has given Boeing a contract worth $6.9 billion to produce Small Diameter Bombs, or SDBs, on an ongoing basis.
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Boeing will not just be selling these bombs to the U.S. Several allied nations are also in line for Boeing’s SDB output, including Japan, Bulgaria, and Ukraine. The SDBs have different variants, including a laser-guided model and the Focused Lethality Munition model, which keeps damage down by focusing its explosion.
On the Picket Lines
New reports suggest Boeing will need that cash if it hopes to get workers back on the job. Reports suggest the union is trying to get a pension that has been frozen since 2014 restarted at Boeing, a move that will send costs soaring. The union is also demanding higher wages and more time off.
Selling Boeing’s Space Business
Boeing’s space business may soon have a buyer. A report from Reuters suggests that Sierra Space is in the running to buy the United Launch Alliance, a joint venture of Boeing and Lockheed Martin (LMT). However, there are signs that the ULA will remain unsold going into the end of the year, with the Sierra Space deal failing to launch.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, four Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 17.24% loss in its share price over the past year, the average BA price target of $206.11 per share implies 32.33% upside potential.
