Boeing rises after landing $20 billion US Navy fighter jet contract

By Reuters News

** Shares of Boeing BA.N rise nearly 3% to $193.22 premarket

** Company has been selected to build the US Navy's next-generation stealth fighter, the Pentagon said on Tuesday, marking its second consecutive major win on fighter jets and capping months of delay over a program central to US strategy for countering China in the Pacific

** JP Morgan maintains "overweight" rating on Boeing, says the win is important, but longer-term investor focus should remain on increasing commercial aircraft production and cash flow per plane

** Boeing beat out rival Northrop Grumman Corp NOC.N for the development contract, worth $20 billion, to produce test aircraft

** Shares of Northrop down ~3% in premarket trade

** "We do not know much about the $20b+ development contract that Boeing won today, but mgmt's previously stated commitment to exercising discipline in pursuing new business leads us to assume that it has not taken on undue risk," brokerage says

** Up to last day's close, Boeing stock down ~13% YTD

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