As we all know—and as a quick trip through our archives will tell you—things have not been great for aerospace stock Boeing (BA) lately. However, all is not lost, thanks to an unexpected vote of confidence that came from an interesting source. That was all investors needed to hear, and shares surged nearly 3.5% in Thursday afternoon’s trading.
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That new vote of confidence came from Scott Kirby, CEO of United Airlines (UAL), who met with new Boeing CEO Robert “Kelly” Ortberg. Naturally, Kirby—as head of an airline—had some harsh words for Boeing over quality issues. Why wouldn’t he? After all, he’s buying a lot of Boeing aircraft and counting on them to work.
But after the duo got together for lunch and had some conversation, Kirby came away pleased with Ortberg and his plans for Boeing. A LinkedIn post drove the point home when Kirby noted, “…I also came away with a renewed confidence that Boeing is on the right path and will recover faster than most expect.”
Take the Deal, Says DOJ
Meanwhile, there’s the matter of the plea deal struck between the Department of Justice (DOJ) and Boeing. While there’s been some controversy surrounding the deal—particularly from the families of those who died in the incidents in question—the DOJ is sticking by its guns and recommending the deal go through.
The DOJ, in a court filing, noted that the deal as presented “…is a strong and significant resolution that holds Boeing accountable and serves the public interest. That includes hefty fines, along with the “…billions the company has already paid,” and noted, “The government cannot prove beyond a reasonable doubt that Boeing’s fraud directly and proximately caused the 737 MAX plane crashes.”
Is Boeing Stock a Buy, Sell, or Hold?
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 24.23% loss in its share price over the past year, the average BA price target of $217.47 per share implies 24.52% upside potential.
