We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing (BA) Wins $109M Navy Deal for P-8A Training Systems
Read MoreHide Full Article
The Boeing Company (BA - Free Report) recently secured a contract for procuring P-8A training systems for the government of New Zealand. Work related to the deal is expected to get completed by January 2024.
Valued at $109.2 million, the contract was awarded by the Naval Air Warfare Center, Training Systems Division, Orlando, FL. Majority of the work pertaining to this deal will be carried out in St. Louis, MO and Tampa, FL.
Per the terms, the jet maker will procure one Operational Flight Trainer (OFT) with one OFT Brief/Debrief Station (BDS); one Weapons Tactics Trainers (WTTs) with one WTT BDS; one 10-seat flight management systems trainer electronic classroom; one 10-seat mission systems desktop trainer electronic classroom; one training system support center, along with some other parts of the training systems.
Importance of P-8A Poseidon
The P-8A Poseidon is militarized with maritime weapons, which patrol the globe, performing anti-submarine and anti-surface warfare, intelligence, surveillance and reconnaissance, and search and rescue missions. Seven nations across the globe have selected the P-8A as their future maritime patrol aircraft including South Korea and New Zealand. In February, Britain’s Royal Air Force (RAF) received its first P-8A aircraft, which will be instrumental in monitoring Russian submarine activities.
This indicates the global demand that this jet model enjoys, which is further evident from the latest contract win. In March 2020, Boeing won a $1.5 billion worth contract for manufacturing 18 aircraft for the U.S. Navy, Republic of Korea Navy and the Royal New Zealand Air Force.
What’s Favoring Boeing?
Of the varied defense equipment that Boeing manufactures, the company’s forte lies in the development of combat-proven aircraft, such as the P-8A Poseidon. Additionally, Boeing started developing military aerial refueling and strategic transport aircraft for its fixed-wing military aircraft programs. Such notable developments are anticipated to fuel this aerospace giant’s growth, considering the increasing defense spending provisions made by the current U.S. administration.
Being the United States’ largest jet maker, Boeing enjoys a smooth flow of contracts for military jets and its associated upgrades. The latest contract win is an example of the same.
Prospects
Per a Mordor Intelligence report, the global maritime patrol aircraft market is anticipated to witness a CAGR of more than 3% during the 2020-2025 period. The heightening threat of global terrorism and geo-political issues alongside the need for replacing ageing maritime patrol aircraft with a new and advanced fleet will likely spur demand for maritime patrol aircraft during the forecast period, thereby boosting growth in the market.
Notably, major industry players poised to gain from surging maritime aircraft demand include Boeing, Lockheed Martin (LMT - Free Report) , Textron (TXT - Free Report) and Northrop Grumman (NOC - Free Report) .
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Bigstock
Boeing (BA) Wins $109M Navy Deal for P-8A Training Systems
The Boeing Company (BA - Free Report) recently secured a contract for procuring P-8A training systems for the government of New Zealand. Work related to the deal is expected to get completed by January 2024.
Valued at $109.2 million, the contract was awarded by the Naval Air Warfare Center, Training Systems Division, Orlando, FL. Majority of the work pertaining to this deal will be carried out in St. Louis, MO and Tampa, FL.
Per the terms, the jet maker will procure one Operational Flight Trainer (OFT) with one OFT Brief/Debrief Station (BDS); one Weapons Tactics Trainers (WTTs) with one WTT BDS; one 10-seat flight management systems trainer electronic classroom; one 10-seat mission systems desktop trainer electronic classroom; one training system support center, along with some other parts of the training systems.
Importance of P-8A Poseidon
The P-8A Poseidon is militarized with maritime weapons, which patrol the globe, performing anti-submarine and anti-surface warfare, intelligence, surveillance and reconnaissance, and search and rescue missions. Seven nations across the globe have selected the P-8A as their future maritime patrol aircraft including South Korea and New Zealand. In February, Britain’s Royal Air Force (RAF) received its first P-8A aircraft, which will be instrumental in monitoring Russian submarine activities.
This indicates the global demand that this jet model enjoys, which is further evident from the latest contract win. In March 2020, Boeing won a $1.5 billion worth contract for manufacturing 18 aircraft for the U.S. Navy, Republic of Korea Navy and the Royal New Zealand Air Force.
What’s Favoring Boeing?
Of the varied defense equipment that Boeing manufactures, the company’s forte lies in the development of combat-proven aircraft, such as the P-8A Poseidon. Additionally, Boeing started developing military aerial refueling and strategic transport aircraft for its fixed-wing military aircraft programs. Such notable developments are anticipated to fuel this aerospace giant’s growth, considering the increasing defense spending provisions made by the current U.S. administration.
Being the United States’ largest jet maker, Boeing enjoys a smooth flow of contracts for military jets and its associated upgrades. The latest contract win is an example of the same.
Prospects
Per a Mordor Intelligence report, the global maritime patrol aircraft market is anticipated to witness a CAGR of more than 3% during the 2020-2025 period. The heightening threat of global terrorism and geo-political issues alongside the need for replacing ageing maritime patrol aircraft with a new and advanced fleet will likely spur demand for maritime patrol aircraft during the forecast period, thereby boosting growth in the market.
Notably, major industry players poised to gain from surging maritime aircraft demand include Boeing, Lockheed Martin (LMT - Free Report) , Textron (TXT - Free Report) and Northrop Grumman (NOC - Free Report) .
Zacks Rank and Price Movement
In a year’s time, shares of this Zacks Rank #3 (Hold) company have slumped 30% compared with the industry’s 23.3% decline. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>