Boeing Co (NYSE: BA) is in focus this morning after announcing a new contract with the U.S. Air Force. Details of new Boeing-Air Force dealThe aerospace and defence giant has signed a $7.48 billion agreement related to JDAM (Joint Direct Attack Munition) with the Air Force Life Cycle Management Center, Hill Air Force Base, UT.$BA expects the contract that will see it deliver JDAM tail kits, repairs, spares, technical and Laser Joint Direct Attack Munition sensor kits to be completed by early 2030.The news arrives about a month after Boeing Co reported its financial results for the first quarter that topped Street estimates (find out more).Boeing stock is currently down some 30% versus the start of 2024. Is Boeing stock worth buying in May 2024?Boeing will undertake work related to the aforementioned Air Force contract in St. Louis, Missouri.Last week, Brian West – chief financial officer of the New York listed behemoth forecast negative cash flow for 2024. Still, Nicolas Owens of Morningstar sees $BA as undervalued. On CNBC’s “Fast Money”, he said:
There’s still a ton of demand for these planes long term. In three to five years, it’s plausible that they’ll be producing many more of these 737s and doing so profitably.
His $221 price objective suggests about a 28% upside from here. Note that the multinational is scheduled to file its 90-day report on quality improvements by May 30th. More By This Author:Walmart Parts Ways With Capital One
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