With everything that is going on in the world right now, it may not be a surprise that the United States is ramping up Patriot missile production. And a major part of that, amazingly, is aerospace stock Boeing (BA). In fact, one major component to said missile comes out of Boeing, and it just set a record for production of same. This cut little ice with investors, though, and Boeing shares slid nearly 2.5% in Wednesday afternoon’s trading.
Boeing revealed that it just set a record in the Patriot components field; Boeing actually builds the “seeker” part that can identify and track efforts to take down those missiles accordingly. And, through 2024, Boeing delivered just over 500 of the seeker units. That was not just a record high by itself, but it also represented new records for both monthly averages and 12-month rolling averages as well.
It is actually still behind goals in some regards, though; the Pentagon wanted to get Patriot missiles increased to 650 per year. So even with Boeing’s record-breaking streak, it is still not yet to where the Pentagon would like to see it. But with a new expansion set to hit its Huntsville, Alabama facility in a matter of weeks, the numbers the Pentagon is after may be achievable after all.
The Fury Takes on the Ghost Bat
Meanwhile, out at the Avalon Air Show, Boeing faces new competition from a new product from Australia’s Anduril Industries in the field of drone aircraft. Boeing produces the MQ-28 Ghost Bat, a “loyal wingman drone” designed to supplement human-driven aircraft. But Anduril actually has a similar model of its own to show: the Fury.
While it is not immediately clear how the two stack up in terms of features and specs, there is one point that Anduril may have the win on: price. Australian Strategic Policy Institute regional defense expert Malcolm Davis noted that the Fury with “…put some heat on Boeing.” Anduril’s interest in producing the Fury in Australia could also be a point in its favor as well, as Davis did not believe that Boeing could produce the Ghost Bat at the same price Anduril could make a Fury happen.
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 one Sell assigned in the past three months, as indicated by the graphic below. After a 7.37% loss in its share price over the past year, the average BA price target of $197.83 per share implies 11.02% upside potential.
