There is a point at which optimism stops being inspirational and just starts being weird. An episode of Married…With Children once showed Al starting his own 1-900 shoe advice call-in line, and after receiving no calls in its first day, Al resolutely declared “No calls today! Tomorrow, twice as many!”. Something similar happened at aerospace stock Boeing (BA), which saw it declare it was bullish on its own stock in 2025. Investors agreed, and sent shares up fractionally in Tuesday afternoon’s trading.
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The word from MSN made it clear: Boeing is actually bullish on its own stock in 2025. Though this may sound baffling, it actually has reason to take such a stance. One major reason we cited a while back was the recent order from Pegasus Airlines, in which it ordered 100 737 Max planes, and had an option for another hundred.
Throw in several orders and deliveries alike from airlines like Gol and even the United States Air Force, and maybe Boeing really does have a reason to look for 2025 to be better than 2024. Certainly, it cannot be much worse, but with Boeing having spent the year doing the heavy lifting to turn things around—a new machinists’ union contract, major new safety initiatives, and more—suggesting that 2024 may simply have been a transition year is not inherently out of line.
Not All Good News, Though
As bright a picture as that may be, there are still dark clouds on Boeing’s horizon. American Airlines (AAL) recently announced it would be paring back its international flights in 2025, because it is still waiting on a shipment of 787 Dreamliners from Boeing. Flights from Chicago to Paris will now restart in May as opposed to April, and flights from Miami to Paris will stop starting in May, noted a Quartz report.
However, Boeing may be able to turn this around too; it has a new Chief Communications and Brand Officer in Ann Schmidt, noted Reuters. Schmidt previously served as interim chief following the departure of Brian Besanceney back on October 1. Now she has the job completely, and she will have her work cut out for her improving the Boeing brand at a time when it may be at its worst.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 12 Buys, seven Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 31.82% loss in its share price over the past year, the average BA price target of $190.29 per share implies 6.28% upside potential.
