Key Stats for Boeing Stock
- Price change for Boeing stock in last 6 months: -13%
- $BA Stock Price as of Oct. 9: $190
- 52-Week High: $254
- $BA Stock Price Target: $272
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Avolon, the world’s third-biggest aircraft lessor, placed a large order on Friday, Reuters reported. It agreed to buy 140 Boeing (BA) aircraft and ordered 110 from Airbus, with an option for 100 more.
The Boeing order is for 140 737 MAX jets, while the Airbus order covers 75 A320neo planes and 35 A330neos.
This is Avolon’s largest order with either maker. It brings the lessor’s total aircraft on order to 749, up from 561 planes it owns today.
Avolon’s majority shareholder, Bohai Leasing, still needs to approve the deal. Avolon expects that before the end of the month.
Lessors own about half of the world’s airline fleet. Airlines have leaned on them because of a backlog of plane orders.
That has supported lessor rentals, resale values and profits. Avolon also sold 29 aircraft last quarter, with 112 more agreed to be sold by the end of September.
CEO Andy Cronin said demand for new-technology aircraft remains strong.
See analysts’ growth forecasts and price targets for Boeing stock (It’s free) >>>
What the Market Is Telling Us About Boeing Stock
For Boeing stock, this is a clear positive. It adds to an already large order book. The order also leans on the 737 MAX, which is Boeing’s key jet.
Boeing’s backlog was already a record $715 billion in July, including more than 6,200 airplanes.
Boeing delivered 171 airplanes in Q2, its best quarter since 2018. The company is ramping 737 output to 47 jets a month. It plans to reach 52 after that.
The orders only help if Boeing can build and deliver the planes. Management said supply chain readiness, including engines, is key to its plans.
On the 737, CEO Kelly Ortberg said he sees no supply chain limits at rate 52. He expects things to get harder from 52 to 57 and beyond.
Cash flow matters, too. Boeing still expects free cash flow of $1 billion to $3 billion this year. It also calls $10 billion in free cash flow “very attainable” over time.
Boeing’s Q2 core loss was $0.76 per share, and the company took a $280 million charge on the VC-25B program.
It is also in early labor talks with its engineers’ union, with the contract ending in October. So Boeing stock is balancing strong demand against the work of building and delivering.
Orders like this one give Boeing more years of work. Investors will watch the Bohai approval and the production ramp. Both will matter for Boeing stock in the months ahead.
Estimate a company’s fair value instantly (Free with TIKR) >>>
So what is Boeing stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what BA stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
