In recent developments, Boeing (BA:NYE) was able to turn the tables when faced with a challenging delivery schedule. The aerospace industry major disclosed a significant new deal at the same time doubts persisted regarding its recent delivery performance. In response, investors were cautiously optimistic, which caused a little drop in the price of Boeing’s stock in the last few minutes of trading on Tuesday. This article will highlight the influence of these events on Boeing stock forecast.
Delivery Woes:
Boeing’s latest announcement initially appeared to foreshadow impending disaster. The company disclosed that it had delivered a mere 35 aircraft in August, marking the lowest monthly delivery figure in the past four months. This batch comprised 22 units of the 737 Max, along with five 787 Dreamliners, five 767s, and three 777 freighters. This brought Boeing’s total deliveries for the year to 344 planes, significantly trailing its chief competitor, Airbus (EADSY:OTC), which boasted 433 deliveries.
A Ray of Hope:
However, just as the delivery news concerned the market, Boeing received a substantial lifeline. SMBC Aviation Capital placed an order for 25 units of the 737 Max, amounting to approximately $3.7 billion in revenue for Boeing at prevailing market prices. This single transaction nearly matched Boeing’s entire August delivery count.
Notably, it also pushed total orders for the 737 Max to 81 aircraft, almost three times the number recorded for August. SMBC expressed confidence in the long-term demand for the 737 Max, reinforcing its commitment to Boeing. This order came hot on the heels of another significant purchase of 50 planes by Vietnam Airlines, further buoying Boeing’s prospects.
Boeing Stock Forecast :
Turning to the financial outlook for Boeing, analysts project a target price of USD 250.06 for The Boeing Company over the next 12 months, according to predictions from 15 analysts. This price ranges as high as USD 300 and as low as USD 180 for September 2024.
Analysts Rating:
The consensus among analysts rates The Boeing Company as a “Buy.” However, Stock Target Advisor’s analysts present a more cautious stance, categorizing it as “Bearish” based on two positive signals and nine negative signals.
As of the last closing, The Boeing Company’s stock traded at USD 210.65. Over the past week, the stock price declined by -5.36%, while over the past month, it experienced a -10.64% dip. Nevertheless, the stock has displayed resilience over the last year, boasting an impressive +32.72% gain.
Conclusion:
Boeing’s ability to secure substantial orders at a critical point underscores its enduring appeal in the aerospace industry. Boeing’s future looks bright with acquisitions from SMBC Aviation Capital and Vietnam Airlines, despite recent delivery issues. Investors, while cautious, can believe in the company’s performance over the past year.
