It might be hard to believe, but today was a good day for aerospace stock Boeing (BA). In fact, Boeing is up nearly 3% in Thursday afternoon’s trading thanks to one major win for the company: a $5.2 billion order for jets from Israel.
Israel put in an order for 25 next-generation F-15 fighter jets, noted a report from Reuters. The $5.2 billion involved in making the order came from an aid package from the United States, and also comes with an option for another 25 jets to be ordered later. Delivery is set to start in 2031, and the delivery rate is four to six aircraft annually over a period of, roughly, four to six years.
The F-15s in question will have their weapons systems integrated with current Israeli weapons systems, and will also offer “increased range and payloads,” the report noted. Israel previously landed a third squadron of F-35 jets earlier this year, the report noted, which actually gives Israel a lot of extra power in the region. Eyal Zamir, defense ministry director general, noted that the F-15s “…represent…a historic enhancement of our air power and strategic reach—capabilities that proved crucial during the current war.”
737 MAXes Back in Play
Meanwhile, the 737 MAX jets, which gave Boeing some significant problems, are set to come back online as well. This might actually prove helpful to Spirit AeroSystems (SPR), who revealed recently that it has serious concerns over whether or not it can continue to function as a going concern.
But the Federal Aviation Administration (FAA) will be watching closely, noted a CNBC report, including keeping an “enhanced on-site presence” at the company. Though the production will not start immediately—Boeing’s workers do not need to return until November 12—it will likely kick up not long after that. However, an earlier report suggested that Boeing’s restart of the 737 MAX line will likely be a “very gradual” one.
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, six Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 21.31% loss in its share price over the past year, the average BA price target of $193.62 per share implies 27.76% upside potential.
