So after yesterday’s performance at aerospace stock Boeing (BA), which featured Boeing cutting product lines, positions, and entire business units, today’s revelation of Boeing’s future plans comes as something of a relief. Shareholders were likewise relieved, with shares up nearly 1.5% in Thursday afternoon’s trading.
Boeing has been working on getting its 777X into service for some time now, and it brings with it a lot of hope for Boeing’s future, assuming it can actually make the things at a rate sufficient to even kind of meet demand. But beyond that, it also represents a fundamental change in passenger experience for long-distance, sometimes called “long-haul” flights.
Boeing is eager to compare the 777X to its chief rival, the Airbus (EADSY) A350-1000. On several fronts, it delivers quite well. It offers a 5% improvement in aerodynamics, reports note, thanks in large part to its slightly longer wingspan. It also boasts a 10% improvement in fuel efficiency as well as a 10% improvement in “operating economics,” which likely extends to include maintenance costs. Improvements in the cabin interior include automatically-dimming windows as well as ceiling lights that simulate a starry sky.
Trump Isn’t The Only One Waiting
The problem for Boeing, as ever, is production. New reports noted that Boeing has pushed back an order from Turkish Airlines by another six months, potentially, a move which is leaving the airline considering an order with Airbus instead.
Boeing was originally supposed to ship the order for Turkish Airlines in “mid-2023,” reports note. But that order may be under fire, as it apparently has not been “finalised” yet. Thanks to a lack of resolution in the contract, along with issues of delivery, Turkish Airlines may not see its order until mid-2025 instead. This is not the first time we have heard about such things, and Boeing may be in line to lose quite a bit more business to come if it cannot get its production numbers back up to at least the FAA-mandated production cap.
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, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 15.28% loss in its share price over the past year, the average BA price target of $196.88 per share implies 12.32% upside potential.
