Analysts predict 28% upside for Boeing (BA) amid strong fundamentals

Analysts predict 28% upside for Boeing (BA) amid strong fundamentals
1 month ago
4 mins read

In light of the recent positive sentiment around Boeing Company (NYSE: BA) and its summer stock performance, the firm is revising its long-term global plane demand forecasts owing to a strong recovery in domestic markets such as the United States.

Meanwhile, China’s airlines are anticipated to acquire 8,700 planes from Boeing over the next two decades, for a total of $1.47 trillion, according to a statement released by the company on Thursday.

The current forecast from the American planemaker for the period up to 2040 is 1.2% higher than its prior forecast of 8,600 planes made last year. Moreover, according to Boeing, China’s aircraft fleet will require commercial services totaling roughly $1.8 trillion. Thus, BA may see greater demand ahead as it banks on the country’s ability to recover from the coronavirus.

Currently, in the market, BA shares are trading in the middle of their 52-week range; however, due to recent movement in the S&P 500 Index, BA shares are presently lagging the market due to this.

BA 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Chart analysis

The stock closed Wednesday afternoon at $216.98 +8.40 (4.03%) higher. Meanwhile, pre-market data from the Nasdaq pre-market real-time quotations tracker shows the consolidated last sale at $218.35 +1.37 (+0.63%) on a 37,744 volume at the time of publication.

Furthermore, BA’s price has been fluctuating in the region of $206.53 – $223.84, which is a significant range over the last; it is now trading in the center of this range, which suggests that traders may find some resistance above the current price.

With prices consolidating recently, BA does provide a suitable setup opportunity for investors. Above the current price, there is very little resistance to the upward movement. The level of $215.27 represents a critical support zone, which means that one could place a stop order below this level.

We discovered one critical support zone spanning the price range of $206.98 to $215.27 formed by the intersection of several trend lines and significant moving averages across multiple time frames. Conversely, when we analyze the resistance, we discover a significant resistance zone at $229.75 from a daily trend line.

View on Wall Street

Based on 14 Wall Street analysts that have provided Boeing with 12-month price estimates in the previous three months. The average price goal is $278.07, with a high of $307.00 and a low of $224.00 anticipated. Compared to BA’s current price of $216.98, the average price target reflects a move of 28.15% from the previous close.

Analyst price target on BA. Source: TipRanks.com

Interestingly, based on the stock’s performance over the last three months, eight TipRanks experts have suggested that investors “Buy” BA, while another six analysts have recommended that investors “hold” the stock. Noticeably, none of the analysts advocate to “sell.”

Boeing, as a result, is considered a moderate buy by the majority of experts, with an average price target rise of 28.15% from the current price of $216.98.

Boeing to build military drones in Australia

It’s worth mentioning that Boeing has chosen Toowoomba as the preferred location for a drone manufacturing plant, a deal that could be worth up to $1 billion to the Queensland economy over the next ten years.

It will be the first military combat aircraft to be designed, developed, and produced in Australia in 50 years, and the facility will be the first of its kind to be built by Boeing outside of North America. 

Wellcamp Aerospace and Defence Precinct near Toowoomba will house the facility, which will be established in collaboration with the state government.

This news follows the establishment of Australia’s first commercial drone flight testing facility at Cloncurry Airport in December, with Boeing serving as the facility’s first user.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.