Throughout all the things that have hit aerospace stock Boeing (BA) over the last several months, it was abundantly clear that airlines were sticking with Boeing. Whether that was because of brand loyalty or because there are so few choices in the market is unclear, however. Emirates, one of the biggest airlines on Earth, proved especially helpful recently, and Boeing shares were up nearly 2% in Thursday afternoon’s trading.
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Emirates agreed to a “wet lease” of two more 747-400 freighters from Boeing. This will, according to a report from Freight Waves, increase Emirates’ “main-deck cargo capacity” a full 15%. These are entirely cargo carrying aircraft, the reports noted, and will be part of a “multiyear transportation services agreement” with Compass Cargo Airlines, an airline operating in Bulgaria.
Emirates SkyCargo divisional senior vice president Badr Abbas noted that the move reflects the growing importance of Dubai as a center point for logistics around the world, and that in turn should mean demand will continue to rise as well. Emirates may not be done with bringing in new aircraft, either; the report noted there may be further expansion between Emirates and Compass.
Backhanded Support
But while Emirates is sticking to Boeing for carrying cargo, Emirates also had some things to say about Boeing and its labor practices. In fact, a Business Insider report noted that Emirates president Tim Clark believes Boeing needs to improve treatment of workers in order to get ahead. “You look after the people, they look after you,” noted Clark.
Which is true, mostly, and a key point to remember in the wake of Boeing’s labor negotiations last year, which featured its last, best offer, followed promptly by another offer, and then an offer that came before offers started getting worse. Clark also does not look for rapid improvement at Boeing, believing that “…the hiatus, for me, is likely to last until the end of the decade.”
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 15 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 16.72% loss in its share price over the past year, the average BA price target of $196.21 per share implies 16.05% upside potential.
