A big new order is usually good news, and for aircraft manufacturing titan Boeing (NYSE:BA), it’s no different. It walked away with another big order, though it didn’t excite stockholders that. Indeed, Boeing shares are up fractionally in Tuesday morning’s trading session.
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The order in question came from Avolon, an Irish lessor that agreed to pick up 40 737-8 jets as part of a larger move to expand its available fleet. The Boeing purchase—along with a sizable purchase from Boeing rival Airbus (OTHEROTC:EADSF)—is part of a larger plan to bring Avolon’s fleet to a total of 110 jets. Indeed, Airbus came out ahead in this exchange; while Avolon bought 40 Boeing craft, it picked up 100 A321neo jets from Airbus. Based on current prices, the value of the Boeing craft purchased was around $4.9 billion, whilst Airbus picked up $12.95 billion in orders.
Is Boeing on the Way Back?
Boeing winning may seem like a new thing, but lately, Boeing’s wins have packed headlines. It picked up a whopper of an order after the Dubai Airshow 2023 event and also landed some recent orders from several other airlines as well. Emirates alone placed an order valued at a reported $15.6 billion. In fact, just yesterday, Boeing landed another hefty order from the U.S. Army, which picked up six remanufactured Chinook helicopters for $271 million.
Start adding up all these billions and millions together, and it looks like Boeing might be crawling out of the crater that 2020 left in its wake. While certainly, it can’t expect orders like this all the time, the sheer value of the orders—coupled with a little care in cash husbanding—should keep it up and running for some time to come.
What is the Prediction for Boeing Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 33.3% rally in its share price over the past year, the average BA price target of $255.74 per share implies 2.41% upside potential.
