The tariff situation has left an unexpected hole in the book of business at aerospace stock Boeing (BA). But, as we all well know by now, Boeing has a waiting list that stretches out for years, if not decades. That may be bypassed by Air India, who is reportedly going all the way with talks to buy the rebuffed planes. And that news struck investors just fine, as Boeing shares gained fractionally in Friday afternoon’s trading.
When China’s airlines turned away Boeing’s planes at the gate, their prices more than doubled as a result of tariffs, Boeing was left with the question of where to sell them. That point got particularly simple when airlines started making offers on the rebuffed planes. First, Aeroflot in Russia swung in about a week and a half ago. But Russia had a few conditions before it would pick up those planes, mostly relating to unfrozen assets connected to the Russia-Ukraine war, which Russia would then use to buy planes. But days later, Air India stepped in to make a similar offer, and without any of the encumbrances that would have come with the Russian deal.
Now, Boeing and Air India are in official talks to pick up the planes in question, which is particularly interesting given that Air India had a chance to buy some more Boeing planes back in February, but at the time, elected to not make that purchase. However, the reason why Air India did not make the additional purchase was due to Boeing’s massive backlog, which would have all but ensured the planes would not arrive for years. These planes are ready, immediately, so for Boeing to sell them to Air India might prove an easy adjustment.
The Q-Suite is Out at Boeing
Not all the news was so welcome, however. Boeing recently found that it was likely to lose Qatar Airways’ Q-Suite debut to its immediate rival Airbus (EADSY). The reason? The usual. Delays, and plenty of them.
For those not familiar, the Q-Suite is Qatar Airways’ business-class cabin. Set to debut at the Arabian Travel Market in Dubai, the Q-Suite Next Gen, as it is known, will feature an array of new features including something every eight year old has longed for: a “Make My Bed” button that activates turn-down service for the cabin’s beds. Among the other new features is movable 4K OLED screens, increased dining space, and “digitally-controlled privacy dividers.”
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 13 Buys, five Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 5.84% rally in its share price over the past year, the average BA price target of $198.29 per share implies 12.19% upside potential.
