It’s a bit of good news for aerospace company Boeing Co. (BA) as a hefty new order arrives. However, the company continues to layoff staff around the U.S., this time in Alabama.
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The U.S. Army has put in an order for three new Chinook CH-47F Block II helicopters. That means a hefty payday of $135 million for Boeing. The release noted that this was a part of the army’s “modernization efforts.”
At the same time, 158 employees at the Huntsville, Alabama manufacturing plant will be losing their jobs in January. It is part of a larger effort at Boeing to adjust its workforce and align staffing with financial targets.
Improving the Bottom Line
Separately, Boeing’s turnaround plan depends heavily on stabilizing production, reducing inventories, and improving free cash flows to regain competitive positioning.
Given that Boeing has about $83 billion in inventories, a whopping $72.1 billion of which is connected to its commercial airline operations, the company needs to close deals and ship products to get back on track.
Is Boeing a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, six Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 31.84% loss in its share price over the past year, the average BA price target of $193.38 per share implies 21.36% upside potential.
