It might be time to shed aside the gloomy sentiment for plane makers as major orders may be up for grabs for Boeing (NYSE:BA), Airbus (OTC:EADSY), as well as Brazil’s Embraer (NYSE:ERJ) (DE:EMY).
Mega Order from North Africa
According to Bloomberg, Moroccan national carrier Royal Air Maroc (RAM) is looking to order nearly 200 planes by September. The airline is considering bids from BA, Airbus, and ERJ. Recently, the company’s CEO, Abdelhamid Addou, noted that it is looking for nearly 125 narrowbody jets and around 63 widebody planes. RAM is also planning to order 30 regional jets.
Notably, the chatter of the mega order comes amid surging travel demand and doubts over timely plane deliveries. RAM plans to deploy leased planes while it awaits aircraft deliveries in the future.
And the Middle East
Joining RAM in mega plane purchases this year is Qatar Airways. The air carrier is also looking to order nearly 200 planes and is said to be close to a decision on an order for widebody planes. It will source jets from both Boeing and Airbus, according to Bloomberg. At present, Qatar Airways has an outstanding order for 74 Boeing planes and 18 Airbus planes.
A New Twist in the Tale?
Adding a bit of a twist to the airplane market is Saudi Arabia. The country is said to be in talks with China’s plane maker Comac. Notably, the latter’s C919 plane is seen as a competitor for Boeing’s 737 Max and Airbus’ A320Neo. Still, last month, Saudia, the national carrier of Saudi Arabia, announced a mega order for 105 Airbus planes.
What Is the Price Prediction for BA Stock?
Boeing’s stock has substantially underperformed compared to Airbus and Embraer this year due to its troubles both on and off the ground. However, the TipRanks Stock Comparison tool indicates the highest potential upside of 23.6% in BA stock over the coming periods, based on a Moderate Buy consensus rating and an average BA price target of $219.57.
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