Aerospace stock Boeing (BA) hit the Dubai Airshow recently, and has already delivered one serious win from the event that gives it an edge over Airbus (EADSY), its primary rival. Boeing landed an order for 65 777-9 aircraft from Emirates, and wants Boeing to start formally looking into the notion of a 777-10. Despite this major victory, Boeing stock still declined nearly 1.5% in Monday afternoon’s trading.
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With this purchase, reports note, Boeing now has outstanding orders for 315 aircraft with Emirates. The two have been working together for 40 years now, and the deal also serves as a diplomatic bridge of sorts to help keep the United States in the Middle East’s collective corner. In fact, reports note, with this order in place, Emirates will now receive aircraft deliveries from Boeing until 2038.
Better yet, Emirates is looking for a feasibility study on a whole new model of 777X gives Boeing the potential for more orders, assuming the study proceeds well. Apparently, Emirates was interested in the new version due to “…air traffic growth and increasing constraints at airports.” Further, reports note, the agreement to sell Emirates the 777-9 aircraft was written in such a way that it can transfer its order to smaller 777-8 or even larger 777-10 aircraft as it likes, if the aforementioned study goes well.
Another Order
Meanwhile, Emirates was not the only airline to buy in. Air Senegal reportedly ordered another nine 737 MAX aircraft at the show. The contract came with the option to buy another six later, which could send the total as high as 15. Signing the contract were Brad McMullen, Senior Vice president of global sales and marketing at Boeing, and Yankhoba Dieme, Senegal’s Minister of Infrastructure and Land and Air Transport.
While some here might say this is a natural consequence of Boeing being half of a functional duopoly, others might instead say that this is a sign that Boeing is still a trusted, vital, and valuable part of the aviation market as a whole. But either way suggests good news for Boeing and its investors for quite some time.
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 and two Holds assigned in the past three months, as indicated by the graphic below. After a 35.21% rally in its share price over the past year, the average BA price target of $258.23 per share implies 34.87% upside potential.
