Remember all the kerfuffle about the next Air Force One? How aerospace stock Boeing (BA) was supposed to be making it, but was way behind schedule? How Qatar stepped in to offer an old 747 that could be refitted into a plane that makes sense for the Trump administration? There is a new update around that plane, and the early looks coming out suggest that it is looking pretty impressive. Investors are actually somewhat pleased about the matter, and shares of Boeing ticked up fractionally in Friday afternoon’s trading.
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The early pictures coming out focused on the plane’s interior are almost staggering. “Opulence” is almost an insult to what has been done here, with earth tones and gold accents dominating the pictures. This looks less like an aircraft and more like an upscale hotel lobby that can fly. With reports suggesting that around a billion dollars even will be going into this plane’s renovation, it really is not surprising that it should look this good.
Cabinet Alberto Pinto handled a lot of the interior design, and the plane has been fully redesigned with suites, staterooms, dining rooms and more. As for when the plane goes into service, the Trump administration looks for it to start service in 2026. Aviation experts are less sure due to security concerns around the aircraft, and the sheer amount of work required.
Speaking of a Long Time Coming…
Meanwhile, Boeing’s chief financial officer, Jay Malave, made it clear that the next commercial aircraft release from Boeing would be quite a long time in coming. Malave noted, “The market has to be ready. The technology has to be ready. The Boeing company has to be ready. We don’t believe any of those factors have been met in any way.”
With Boeing looking to replace the 737 MAX, this news is somewhat disheartening. But the 737 MAX has done the job for quite some time, and with Boeing’s “MAX hangover” said to be no longer a problem, it may well have the time to wait until it is ready to release that new aircraft.
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 13 Buys, two Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 31.14% rally in its share price over the past year, the average BA price target of $249.07 per share implies 23.1% upside potential.
