Aerospace stock Boeing (BA) has come to the conclusion that its operations in Wichita, Kansas represent substantial opportunity for the company. As such, Boeing plans to put a billion dollars into improving the Wichita operations over the course of the next three years. The news was welcome enough for investors as well, with Boeing shares up nearly 1.5% in Wednesday afternoon’s trading.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Boeing plans to put that billion into several parts of the Wichita operation, including outright factory upgrades and expanded worker training. Boeing also looks to put more into Wichita’s manufacturing system overall to accommodate upcoming boosts in production rates.
Boeing did not just plan to spend more money in Wichita, though, as it also got together with Wichita State University and its Campus of Applied Sciences and Technology. The two will be building a new training facility known as the Boeing Workforce Training Center, offering up classrooms and “specialized training labs.” This is similar to the recently-announced move in Newark, Ohio where Boeing was also setting up a workforce training center.
The Vital Chinese Order
We also know that Boeing’s Kelly Ortberg is in China right now with President Trump and a collection of top brass from American corporations in a bid to build new trade arrangements. The talks have been ongoing for some time now, but Boeing is on the cusp of a major 500-plane order from Chinese airlines.
This move is likely difficult for China to make, as it may have been using the idea of a huge purchase to buy time in its dealings with Trump. China has its own aircraft industry to consider, after all, with COMAC in the mix and producing aircraft. But COMAC’s output has been comparatively small, and producing the kinds of numbers China needs right now would be a bridge too far.
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 15 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 15.7% rally in its share price over the past year, the average BA price target of $273.86 per share implies 13.66% upside potential.
