Boeing’s (NYSE:BA) shares rose in premarket trading on Monday following an analyst upgrade from Melius Research, which shifted its rating on the stock to Buy from Hold. The upgrade came on the heels of Boeing’s (NYSE:BA) award of a major contract to develop the U.

Boeing scored a contract to build the Pentagon’s next-generation jet fighter, beating out rival Lockheed Martin. The deal has big implications for Boeing’s bottom line, its beleaguered defense unit and the jet maker’s strained relationship with the Trump administration.

“Under research and development contracts with DARPA, Boeing and Lockheed Martin designed two X-planes as risk reduction for the Next Generation Air Dominance (NGAD) Platform,” mentioned the press release. “These aircraft first flew in 2019 and 2022, logging several hundred hours each.”