The reckoning for aerospace stock Boeing (BA) has arrived, and indeed, what we posited would happen yesterday indeed arrived. Catastrophe, followed by tapdancing. But the tapdancing seemed to work out, and disturbingly well, as Boeing shares jumped nearly 2.5% in Tuesday afternoon’s trading.
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The early projections turned out to be almost completely right, with an $11.8 billion projected loss turning into an $11.83 billion actual loss. The second-largest loss in history, topped only by 2020. But that catastrophe was, as expected, followed up by rapid tapdancing, and the tapdancing hit investors where they lived.
Kelly Ortberg, Boeing’s still-new CEO, noted that Boeing would likely turn cash positive starting in the second half of 2025. Ortberg also looks for Boeing to deliver 737 Max planes measuring in the “upper 30s” starting this month, which is a very nice gain from the 17 delivered in December. Boeing also looks to sell off several smaller businesses within the operation, including the Jeppesen navigation operations. We had heard about Jeppesen being potentially up for sale some time ago, but that potential has, apparently, not diminished even slightly.
More Future Plans
And that is not all for Boeing. It is also working to speed up operations on Air Force One, and will hopefully be able to get the planes into service before the president who originally ordered them four years prior departs office. The project is reportedly $2 billion over budget, and several years late. But Boeing looks to put out an “updated delivery schedule” this spring demonstrating a likely delivery date to come.
Finally, Boeing also is not particularly worried about any tariff issues that may come out of the Trump administration. While Boeing does have operations worldwide, Boeing’s production is entirely based in the United States. That should help keep Boeing off the firing line when it comes to getting hit with tariffs, as Boeing needs the parts it makes in other countries to carry out assembly in the United States.
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, six Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 12.85% loss in its share price over the past year, the average BA price target of $190.50 per share implies 6.75% upside potential.
