The interest in the product line at aerospace stock Boeing (BA) is starting to get interesting. We have seen multiple sales in the last couple of weeks, and all of these sales are made with full knowledge of Boeing’s backlog, which stretches back several years. And two more sales have recently come to light, which gave Boeing a significant boost in Friday afternoon’s trading. Boeing shares were up modestly in the session.
We heard that a British airline had picked up a hefty number of new Boeing aircraft, and we might now have the specifics on the move that Commerce Secretary Howard Lutnick demurred on yesterday. Reports noted that British Airways owner IAG revealed plans to buy 71 long-haul aircraft. The contract would be split between Boeing and Airbus (EADSY), and feature 32 787-10 aircraft and six 777-9 aircraft from Boeing. Airbus, meanwhile, would supply 21 A330-900neo, six A350-900, and six A350-1000 models.
The order came after IAG revealed its earnings for the first quarter, which came out better than expected, and thus led to IAG pulling the trigger on the new aircraft. But IAG, based on word from CEO Luis Gallego, had been working on the deal for quite some time leading up to the first quarter. Plus, given Boeing’s backlog, some analysts are already expressing the idea that this is a long-term expansion plan.
An Unexpected Asian Win
But that was not the only sale that Boeing made, according to reports. In a move that will undoubtedly annoy Beijing, China Airlines—which operates out of Taipei in Taiwan—ordered 10 777-9 and four 777-8 freighters to give it more room for long-haul capabilities to the United States and Europe, reports noted. Plus, China Airlines reserved the option for five more 9s and four more 8s, which is a significant quantity of hardware.
The 777X line is particularly useful in these situations, reports note, because of its fuel efficiency. It is also something of a milestone, as the new purchase makes China Airlines the first carrier in Taiwan to handle the 777X lineup. Moreover, the 777-9, according to company president Chen Han-Ming, will offer “an enhanced travel experience” to its passengers, making it more attractive in the region.
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 14 Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 8.97% rally in its share price over the past year, the average BA price target of $201.65 per share implies 3.75% upside potential.
