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Wall Street projects double-digit gains for Boeing as 737 MAX secures a stream of orders

Dino
Kurbegovic
Updated: 06 Apr, 2022
3 mins read

Shares of Boeing Co. (NYSE: BA) inched higher on Monday, April 4th by 0.22% which was an all-around positive trading day on the stock market. This price action for the stock represents the broader sentiment investors seem to have on BA, wearily approaching and tracking its performance. 

Air Lease Corp signaled their confidence in the company by ordering another 32 Boeing 737 Max aircraft having 130 737 MAXs in their backlog. This new purchase comes in light of the recovering travel market after the Covid lockdowns and a strong dip the stock took along with airlines across the globe. 

Additionally, the U.S. Air Force presented its budget to the U.S. Congress for 2023 and 2024 to replace their old fleet of Boeing airplanes which should net $194 billion for Boeing. This order is subject to approval from Congress however there is growing pressure from the airforce to replace the 50-year-old planes

Predicting the unpredictable 

After the Covid lockdowns, the stock has been trending downwards and is currently trading in a downward channel congregating around the 20-50-200 Simple Moving Averages (SMAs). Strong resistance is possibly present at the price of $210 and if the stock can break above this level it might have room to grow. 

If downward pressure keeps pushing the stock lower the low resistance point is at $166, any break below we could see selling pressure intensify. 

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

Analysts are mostly bullish on the stock with the next 12 months’ average price targets sitting comfortably at $256.18, this would represent a potential run-up of the stock of 34% from the current trading price of $191.18.

Source: TipRanks

Along with the Covid lockdowns came issues with the performance of Boeing’s new 737 MAX airplane which crashed due to issues with the safety systems. Last month in China a 737-800 plunged and crashed, currently investigators are sifting through the debris to try and figure out what transpired.  

Boeing stock has investors split around the bullishness of analysts on the stock and the 737 MAX’s abysmal performance so far. Investors seem to be worried about what kind of issues the company may face if the new 737 is grounded forever. 

Being a duopoly with their EU counterpart, Airbus, Boeing is enjoying various military contracts along with commercial airliners lining up to order and purchase their products.

Keep a finger on the pulse of the company may provide to be useful for inquisitive investors looking to take on more risk and potentially reap greater rewards.  

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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Dino Kurbegovic
Author

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.

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