A win for aerospace stock Boeing (BA)? Yes, it can happen, and yes, it does happen. In fact, it just did, as new word emerged that noted that Boeing’s deliveries are on the rise, even surpassing those of immediate rival Airbus (EADSY). The win was win enough for investors, and shares gained over 3% in Tuesday afternoon’s trading.
Reports noted that Boeing had delivered 44 jets in February, and of those, 32 were 737 models. This brings Boeing to 89 deliveries for the year so far, which compares nicely to Airbus, who could only put up 65 deliveries. However, this win may be a bit short-lived, as reports noted that Airbus managed to land 14 gross orders this month, while Boeing could only take home 13.
While tariff pressures are mounting, Boeing is still making deliveries to its largest partner: China. Boeing got eight jets into China alone, marking it as Boeing’s most important market overseas. It is also important to note, however, that Boeing’s deliveries have been bolstered by selling off aircraft that were already completed. The deliveries are impressive, but production will need to keep up. And with one of Boeing’s key suppliers at least temporarily lost to a recent fire, that may be a taller order than expected.
Another Meeting
Meanwhile, the new Transportation Secretary, Sean Duffy, is planning a trip out to Washington state to help calm concerns about Boeing’s safety record and improvements therein of late. Duffy, backed up by Federal Aviation Administration (FAA) administrator Chris Rocheleau, will be heading to the Everett factory to get a tour, talk with FAA inspectors, and meet with Kelly Ortberg about what has been going on therein.
This should prove good practice for Ortberg, who himself has a date with Washington on April 2, when he testifies before the Senate Commerce Committee about safety and operations at Boeing. These points will be vital if Boeing is to have any hope of getting the government-imposed production cap lifted and continuing to beat Airbus in terms of shipment count.
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 17.95% loss in its share price over the past year, the average BA price target of $196.88 per share implies 28.92% upside potential.
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