Stock Update (NYSE:BA): Boeing Co to Develop New Military Communications Network for Australia

Boeing Co (NYSE:BA) will provide the next-generation communications system for land-based Australian Defence Forces (ADF) deployed around the world. Developed by an industry team led by Boeing Defence Australia (BDA), the Land 2072 Phase 2B system will provide secure wideband voice, data and video services over wireless and wired infrastructure between deployed forces and headquarters.

Acting BDA vice president and managing director Bill Madley said the system will be based on an agile, modular network design that improves communications capacity, flexibility and responsiveness. “After successfully delivering a number of the ADF’s most complex communication and information systems to date we are ready to deliver this critical new capability to the Commonwealth,” he said.

Under terms of the $665.7 million AU contract, BDA will provide the communications system and initial support services.

Defence’s Director General of Communication Systems, Myra Sefton, said that Defence’s new Integrated Battlefield Telecommunications Network represents a generational transformation in the deployed communications capability of the Australian Defence Force.

“It will provide the infrastructure to handle the increasing data requirements of our modern defence force as they face a complex and dynamic battlespace,” Ms. Sefton said.

“The capability being developed by Boeing Defence Australia and its partners will be a force multiplier that will significantly enhance the effectiveness of our forces on deployed operations.”

The Boeing solution is designed to be interoperable, scalable and able to evolve and grow with the needs of Australia’s modern army.

Boeing Defence Australia is a leading Australian aerospace enterprise. With a world-class team of more than 1,500 employees at 15 locations throughout Australia and two international sites, Boeing Defence Australia supports some of the largest and most complex defence projects in Australia. (Original Source)

Shares of Boeing Company closed yesterday at $132.65. BA has a 1-year high of $158.83 and a 1-year low of $115.14. The stock’s 50-day moving average is $138.46 and its 200-day moving average is $144.12.

On the ratings front, Boeing has been the subject of a number of recent research reports. In a report issued on September 4, Deutsche Bank analyst Vishal Shah maintained a Buy rating on BA, with a price target of $175, which implies an upside of 31.9% from current levels. Separately, on September 3, RBC’s Robert Stallard reiterated a Hold rating on the stock and has a price target of $145.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vishal Shah and Robert Stallard have a total average return of -17.4% and 4.1% respectively. Shah has a success rate of 21.2% and is ranked #3731 out of 3752 analysts, while Stallard has a success rate of 58.5% and is ranked #860.

Overall, one research analyst has assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $172.83 which is 30.3% above where the stock closed yesterday.

Boeing Co, together with its subsidiariesdesigns, develops, manufactures, sells and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services.

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