While we have heard before about what the new Trump tariffs could do to aerospace stock Boeing (BA), a new report out from AerCap (AER) put a little more light on the situation. In fact, Boeing could be looking at plane costs surging millions of dollars per plane. This proved oddly welcome news for shareholders, as shares were up nearly 2% in Wednesday afternoon’s trading.
Aengus Kelly, CEO of AerCap, noted that, in the worst case, the price of a Boeing jet could increase by as much as $40 million an aircraft. This assumes, Kelly describes, a situation in which tariffs send expenses up 25% “across the board.” That will in turn send prices of the finished jet up $40 million, and, ultimately, Kelly noted: “No one’s going to want to pay that.”
If such a thing did come to pass, Kelly noted, most airlines would instead look to Airbus (EADSY). And that would give Airbus the opportunity it needed to take between 75% and 80% of the total global market. Of course, it would also likely add significant delay to receiving any aircraft, as Airbus is only just starting to consider ramping up its production lines this year. Could it actually absorb such a massive influx of new orders?
Staying in the Space Business
But there was good news out of Kelly, who noted that Boeing’s advancements in quality have been nothing short of “…tremendous,” he noted. Kelly further elaborated: “We see it because we’re on the shop floor buying airplanes every day.” And this is good news, as Boeing recently made it clear that it is not getting out of the space business, despite the Starliner debacle that is only just now coming to an ignominious end.
The word came from no less than Michelle Parker, Space Mission Systems vice president, at the Satellite 2025 conference while speaking to SpaceNews. Parker acknowledged that there had been “…some discussion…” around shutting down the space operation, but Parker made it clear that Boeing was “…investing heavily…” in the space market.
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, four Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 13.66% loss in its share price over the past year, the average BA price target of $196.88 per share implies 25.12% upside potential.
Questions or Comments about the article? Write to editor@tipranks.com