Aerospace stock Boeing (BA) has had an excellent run of sales lately, thanks in large part to the efforts of President Trump, who used Boeing aircraft to great effect to help narrow trade deficit gaps. Another deal is currently in the making, as reports note Turkish Airlines is close to making a purchase as well, giving Boeing another leg up. However, investors seemed oddly displeased by this development, sending shares slipping fractionally in Wednesday afternoon’s trading.
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The report says that Turkish Airlines is potentially on the cusp of an agreement for 150 Boeing 737 Max jets, as well as 75 Boeing 787 jets. About the only problem right now left to resolve is the issue of engine supply as well as an engine maintenance facility to be established in Turkey.
If there is no progress on the issue—noted Ahmet Bolat, Turkish Airlines Chairman—Turkish Airlines might ultimately move that order to Airbus (EADSY). The issue of engine shortages seems to be branching out, now considered a global problem. It is unclear if Airbus would be able to offer Turkish Airlines better terms given its own backlog and the likelihood it too is impacted by the engine shortage.
Trouble With Emirates
There is an issue that may be weighing on investors, though, as reports note that a deal with Emirates Airlines is potentially troublesome. With the Dubai Airshow less than two weeks away, both Boeing and Airbus are working out a deal with Emirates. The problem, however, is that both Boeing and Airbus are significantly backlogged, and neither company may be able to supply as quickly or as much as Emirates is looking for.
Boeing’s 777X program is still waiting and was recently delayed once again to 2027. This, coupled with limited availability of new wide-body models, is impacting Emirates’ expansion plans. But since neither will have delivery slots available before 2033, reports note, that may not matter so much as Emirates will not be able to expand regardless.
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 12 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 34.58% rally in its share price over the past year, the average BA price target of $257.25 per share implies 31.13% upside potential.
