We are all clearly aware that aerospace stock Boeing (BA) is in dire need of cash right now. With the strike costing anywhere from $50 million to $150 million per day, depending on who you ask, and showing no signs of stopping any time soon, Boeing needs cash to survive. New reports have emerged about its planned stock sale in support of that goal. However, shareholders weren’t happy, as Boeing shares were down modestly in Monday afternoon’s trading.
The latest word suggests that Boeing is looking to raise around $19 billion with its stock sale, putting out 90 million shares of common stock as well as $5 billion in depositary shares. Should it manage to land that payday, it will put the cash to work about as would be expected: the always-popular “general corporate purposes.”
Here, that includes repaying debts, augmenting working capital and putting investment into its various subsidiary operations. But as we found out recently, Boeing may not have so many of those subsidiaries in days to come. Boeing’s plan to sell off its space business seems to be gaining steam, with reports from Fortune noting that Jeff Bezos‘ Blue Origin has been talking to Boeing about picking up said assets.
More Orders Keep Coming In
And, demonstrating that Boeing is indeed part of a functional duopoly, more orders are coming in that Boeing will not be able to fill for quite some time. Reports from Boeing’s press department revealed that the LATAM Airlines Group will be adding 10 more 787-9 aircraft to its roster, with the option to pick up another five later.
LATAM looks to have 52 Dreamliners in its fleet by 2030, reports note. Further, LATAM reports positive outcomes using the 787 to “maximize capacity on popular routes and launch new routes including its nonstop flight to Sydney, Australia.”
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 two Sells assigned in the past three months, as indicated by the graphic below. After a 15.99% loss in its share price over the past year, the average BA price target of $194.65 per share implies 27.11% upside potential.
