Of all the things you might have heard about aerospace stock Boeing (BA) today, perhaps the strangest is that Boeing is looking to plastic for its future. Yes, Boeing wants to ramp up its production using new methods and new materials, a move that caught shareholders’ attention and sent shares up over 2% in Monday afternoon’s trading.
Boeing is looking for a future in which there is a lot more demand for aircraft than there is currently. It may have reached that conclusion from the hefty book of business that it already has on hand, in which some airlines have basically bought Boeing’s entire output for months at a clip. And, with innovations in new engine technology seemingly years away, Boeing is looking to produce its currently lineup much, much faster.
But with supply chains still shaky, that leaves Boeing looking for new alternatives, as it looks to produce as many as 100 jets per month, or roughly, one 200-seat jet every few hours. That is a long, long way above the current federally-imposed production cap. To that end, Boeing is looking into thermoplastic and other innovative materials to fill the gaps and make production go faster. Hopefully, without compromising safety.
Still Coming Along
Meanwhile, Boeing’s ability to get the cap removed is starting to look better, though naturally, no one will be pulling that cap off in the next few weeks. Acting Federal Aviation Administration chief Chris Rocheleau noted that Boeing is “…on the right path” to the string of vital yet unquantifiable improvements it must make to get the government off its back.
And, in one more sign that all is not lost at Boeing, reports emerged clearing that the Starliner was still considered an “important vehicle” by NASA. Essentially, NASA is eager to make sure there are two options for the Commercial Crew Program. SpaceX is clearly one of those, and thus, Boeing looks to be the second option, even if it seems to be a lesser option right now.
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, four Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 4.76% loss in its share price over the past year, the average BA price target of $197.83 per share implies 9.12% upside potential.
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