I know we have heard this one before, but aerospace stock Boeing (BA) is currently in talks to set up a monster sale to China. As part of ongoing trade talks between President Trump and President Xi Jinping, Boeing is in line to potentially land an impressive sale of up to 500 aircraft. And apparently, this time, China will take delivery of them. Yet investors proved a bit gun-shy, or at least wanted to see the receipts first, because Boeing shares slipped fractionally in Thursday afternoon’s trading.
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We have seen in the past that Boeing aircraft make a great way for countries to narrow a trade gap, and in China’s case, that gap is likely very large. Thus, China is looking to make a major Boeing purchase to help shore things up. Naturally, the details are all still being worked out. Points like which models will be purchased and how long the Chinese are willing to wait for delivery, because at Boeing’s current rates of production, it will be a long time before 500 aircraft get delivered.
It does not help matters, meanwhile, that Boeing lost its lead executive in China. Alvin Liu was the former president of Boeing China, but now, Boeing is looking to replace him with Carol Shen. And with Boeing recently part of an agreement that was set up back in 2023 that fell through, some may be wondering if this one will also buckle.
Taking Over for the 747
The Boeing 747 is easily one of the world’s leading commercial aircraft. Though these aircraft have been around for some time, many are finding a second life in cargo service. But there are signs that there are new aircraft stepping in to put the 747 out to pasture in general.
The good news is that one of these is another Boeing aircraft: the 777F. The 777F is the all-cargo version of the 777 line, and so far, more than 250 of these aircraft have been delivered to customers. The bad news, however, is that Airbus (EADSY) also has a few aspirants to this particular throne, including the A330-200F and the A350F, which is coming up for release in the next few years, reports note.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 17 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 30.6% rally in its share price over the past year, the average BA price target of $259.47 per share implies 15.59% upside potential.
