2024 for aerospace stock Boeing (BA) was, essentially, a dumpster fire that investors can still smell. But there are signs the fumes are clearing, and the biggest of these is that no less than Warren Buffett is considering getting in. He is not alone here, either, and that was enough to give Boeing over 2.5% gain in Tuesday afternoon’s trading.
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A report from Forbes noted that Buffett was taking an interest in a position with Boeing. In fact, some of that interest traces back as far as last March, and apparently, has not yet been dispelled. And apparently it is not just Buffett taking an interest in Boeing; other unnamed “activist investors” are considering the field as well.
Certainly Boeing could use an influx of fresh capital. With tight monitoring from the Federal Aviation Administration still in play—though with a Trump administration in now, that may not last so much longer, or be so stringent, for that time—and a huge book of business to work through, Boeing would welcome cash. And new, high-profile investors could be the start of getting that cash.
Growing Competitors
We already knew that the Chinese were actively working on a competing aircraft with Boeing’s lineup, but the Brazilians also have a line coming up. Brazil’s Embraer (ERJ), noted a report from the Seattle Times, is working on taking some of that market share away from Boeing as well.
The downside to Embraer is that its aircraft are generally smaller than Boeing’s, as its its market cap. But Embraer’s line of planes have proven to be paragons of engineering, a distinct selling point against Boeing and its line of unexpectedly modular aircraft. And there are also some signs that Embraer is working on going after the bigger aircraft as well, like Boeing’s own 737. Having a third firm in the market would split market share, and would likely prove welcome to airlines tired of waiting.
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 15 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 18.39% loss in its share price over the past year, the average BA price target of $196.21 per share implies 11.77% upside potential.
