Is aerospace stock Boeing (BA) back? Well, the latest news would suggest that, if it is not back, it is absolutely closer than it has been in months. Boeing hit the highest level of deliveries that it has seen since 2023, reports noted. Investors were guardedly optimistic, and sent shares up fractionally in Tuesday afternoon’s trading.
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Admittedly, given how 2024 went for Boeing, reaching a level not seen since 2023 is not exactly a bang-up win. But Boeing delivered, in a big way, bringing 45 planes into the various hangars of customers worldwide in January. More specifically, it delivered one 777 freighter, four 787 widebody jets, and the balance—another 40 planes—were 737 MAX jets.
The news is excellent, and encouraging. However, Boeing is not out of the woods yet. Certainly, deliveries are important. That means cash in pocket for Boeing as Boeing receives the bulk of its payment at delivery. But it needs to be able to continue producing at a high rate in order to keep that flow going. While it delivered 40 jets, it only produced about 20. It also has a backlog of 5,554 planes. At 45 per month, assuming it can keep that flow going, Boeing will need just over 10 years to fill its backlog.
More Layoffs?
Meanwhile, Boeing may be looking at more layoffs in the near future as it finds itself defending its Space Launch System (SLS) rockets at NASA. NASA is assuring that the SLS rocket known as Artemis is “essential” to the moon landing program.
But reports suggest Artemis may be facing a cutoff in funding, and given that the SLS system is “billions” of dollars over budget, at last report, this could be the end of the SLS system. With Elon Musk’s SpaceX offering up a proven and lower-cost system, and a growing focus on eliminating waste, that may prove the end for Boeing’s system.
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 13 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 13.23% loss in its share price over the past year, the average BA price target of $196.29 per share implies 8.1% upside potential.
