The triple seven has long been a favorite of slot machine players, but it may also prove a jackpot for Boeing (BA). The beleaguered aircraft maker may finally have a win thanks to its 777X line, but investors were skeptical, and shares dropped over 1.5% in Monday afternoon’s trading.
Reports noted that the Boeing 777-9 has begun flight testing with the Federal Aviation Administration (FAA) as part of the process to get the jet in the air. It also recently received its Type Inspection Authorization, which was another major step in the process.
The 777-9 series has had a rough go of things, as the recent issues with Boeing’s 737 MAX line have left regulators concerned about any new type of Boeing plane. Along, of course, with all the older ones. But with the test process about to go through, completing such a process should go a long way toward re-establishing trust in Boeing as a whole.
A $2 Billion Windfall?
While the completion of the certification process would be a win for Boeing in and of itself, there’s an even bigger potential win at stake. Word from Deutsche Bank 4.3-star analyst Scott Deuschle notes that once certified, Boeing will be able to sell the 20-odd planes it has in storage and produce a hefty $2 billion in revenue by the end of 2025. That’s no small uptick and is just what cash-starved Boeing needs right now after months of limited production.
And, with the 777X line looking at the “most thorough” testing process ever, that should only make them more attractive to airlines, who are already concerned about where they can even buy aircraft anymore with Boeing crippled and Airbus (EADSY) trying to pick up the slack.
Is Boeing Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 16 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 15.11% loss in its share price over the past year, the average BA price target of $212.05 per share implies 18.06% upside potential.
