So the final word is out on the Farnborough Air Show, and apparently, it was a disaster. But Boeing (BA) investors weren’t particularly put out and sent the aerospace company’s shares up nearly 2% in Friday afternoon’s trading session.
Reports from Barron’s declared the show a “dud” in terms of new jet orders, and that’s left both Boeing and its immediate competitor Airbus (EADSY) on the back foot. In fact, the report noted that 2024 was the worst year for new orders since 2006, and this was in an environment where Boeing and Airbus were, by some reports, sold out of production for the next several years.
It might be that airlines and other jet buyers simply saw the writing on the wall and placed few orders this year, realizing that they wouldn’t get filled any time soon anyway. Indeed, between Boeing and Airbus, there are about 15,000 planes that have already been ordered but are sitting in a backlogged state, which works out to more than 11 years’ worth of work based on current delivery expectations.
Meanwhile, Legal Troubles Mount
If that sounds bad enough, then brace yourself; it gets worse. Man, does it ever; apparently, the families of the 346 people killed in two major 737 MAX crashes are calling for the judge in the recent plea deal with Boeing to reject the deal. Considered a “sweetheart” deal, family members cited “outdated and misleading statement of facts” along with “inaccurate sentencing guidelines,” among other points.
And just to top it off, one of the whistleblowers at Boeing has a new and disturbing claim. His lawyers claim that working for Boeing gave him post-traumatic stress disorder (PTSD). John Barnett—the whistleblower who took his own life in March—had apparently been “…traumatised by the hostile work environment.” A civil suit is already in progress.
Is Boeing Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 16 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 19.81% loss in its share price over the past year, the average BA price target of $215.84 per share implies 14.99% upside potential.
