Boeing (BA:NYE) is on the verge of signing a $35 billion contract with Saudi Arabia’s Public Investment Fund. The aircraft maker will send approximately 100 planes, including its wide-body jets for international travel, to Riyadh Air, a new Saudi Arabian airline that began this week. The story also mentions that Riyadh Air is hiring pilots for its new Boeing 787 Dreamliners.
This deal is a big victory for Boeing, which in recent years has lost some of its largest clients to its European competitor, Airbus SE (EADSY). Yet, demand for Boeing’s aircraft has increased in recent months. In February, Air India placed a large order with the American aviation giant for 20 787 Dreamliners, 10 777Xs, and 190 737 MAXs. In addition, United Airlines (UAL) placed an order with Boeing for 100 787 Dreamliners in December 2022. In addition, Boeing is completing an agreement with Japan Airlines to deliver 20 737 Max aircraft.
Boeing Stock Forecast:
Boeing is well-positioned to profit as the aviation industry recovers and defense funds grow. In addition, the recent decision by the Federal Aviation Administration to begin 787 Dreamliner deliveries, which had been delayed owing to an error in data processing, speaks well for Boeing’s future prospects.
Based on Boeing stock forecast, it is rated as a Buy by analysts. The average price target for BA stock is $200.94, indicating a 15.4% upside potential.
