If there were anyone out there that it would be hard for aerospace stock Boeing (BA) to please right now, who do you think it would be? Perhaps the CEO of Alaska Airlines (ALK), Ben Minicucci? That would be one tall order, right? And yet, that is just what happened. Despite this, investors were still skeptical, and sent Boeing shares down fractionally in Friday afternoon’s trading.
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While at the International Air Transport Association’s annual meeting, Minicucci noted that the material seen out of Boeing has been improving on a regular basis. Minicucci noted, “What we’ve seen quarter to quarter is an improvement in safety, an improvement in quality.” Naturally, it was not a perfect run, as Minicucci also noted, “Are they yet there? No, there’s still a lot of work.” But even there, it seemed less like a specific criticism than a simple expression of ongoing distrust.
But there are signs of thawing everywhere. Tim Clark of Emirates Airlines was happy to hear “clearer messages” coming out of Boeing’s top brass, and was happy to see the “change of style” found under Kelly Ortberg. Interestingly, Tim Clark had never met Ortberg’s predecessor, Dave Calhoun, but has met Kelly Ortberg. Clark even made reference to “cautious optimism” of the kind he had not seen “in the last few years,” reports noted.
Tough Room
Naturally, not everything was so positive for Boeing. The deal finally reached with the government that allowed it to avoid prosecution did not even sort of sit well with the surviving families of those who died in the 737 Max jet crashes. In fact, one of the lawyer for the 16 families involved declared the deal “morally repugnant.” It has also reportedly provoked “visceral outrage” from his clients, who, reportedly, declared the $444.5 million payout to be insufficient.
Further, noted lawyer Sanjiv Singh, the deal allows Boeing to “…sidestep true criminal accountability.” Singh also declared that the penalties involved are “…actually like Boeing paying $10 to escape criminal liability. It’s as if they got a misdemeanour ticket or a parking ticket.” Given that Boeing made around $66.5 billion in total revenue in 2024, $1.1 billion is actually a much more substantial portion than implied.
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 16 Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 9.87% rally in its share price over the past year, the average BA price target of $218.37 per share implies 4.62% upside potential.
