5 Defense Stocks to Buy Amid Escalating Geopolitical Tensions

2. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 51

On August 30, The Boeing Company (NYSE:BA) announced that it has secured a $5 billion contract from the U.S. Missile Defense Agency for the integration and testing of the Ground-Based Midcourse Defense Element System. On August 31, The Boeing Company (NYSE:BA) was awarded a $927 million contract from the U.S. Airforce to deliver four KC-46A aircraft to Israel.

This September, BofA analyst Ronald Epstein raised his price target on The Boeing Company (NYSE:BA) to $175 from $170 and maintained a Neutral rating on the shares. On September 8, Morgan Stanley analyst Kristine Liwag raised her price target on The Boeing Company (NYSE:BA) to $233 from $215 and maintained a buy-side Overweight rating on the shares.

At the end of Q2 2022, 51 hedge funds were long The Boeing Company (NYSE:BA) with stakes worth $1.49 billion. This is compared to 52 positions in the previous quarter with stakes worth $1.36 billion.

As of June 30, Viking Global is the largest shareholder in The Boeing Company (NYSE:BA) with stakes worth $190 million. The investment covers 0.87% of Andreas Halvorsen’s 13F portfolio.

Here is what Meridian Funds had to say about The Boeing Company (NYSE:BA) in its second-quarter 2022 investor letter:

“We similarly remained invested in largely out-of-favor The Boeing Company (NYSE:BA), a global leader in developing and producing commercial jet aircraft. Due to some self-inflicted wounds and a bit of bad luck, as well as dramatic declines in air travel early in the pandemic, investor sentiment for this company has simply been awful. As part of our contrarian thinking, however, we view the business as critical to global transportation needs and see multiple catalysts to improve sentiment. In addition to the current surge in air travel worldwide, ramped up production of the 737 MAX aircraft and the pending restart of 787 Dreamliner deliveries should help turn broader sentiment. Additionally, we anticipate a meaningful inflection in cash flow as Boeing starts delivering aircraft currently in storage as well as the eventual expansion of its production in both core platforms.”