Well, there went the good news from yesterday about aerospace company Boeing (BA), as multiple reports emerged today about Boeing customers who would rather not be, and likely will not be in the future, to at least some degree. It is a dark sign when your customers consider themselves better off without you, but investors were not in the least concerned. In fact, Boeing shares were up fractionally in Wednesday afternoon’s trading.
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EasyJet (EJTTF) CEO Johan Lundgren, according to a recent Quartz report, delivered the hammer blow to Boeing, saying in an interview, “The engine choices that we made and also going with Airbus (EADSY) is a better alternative than some of our competitors are having.” That alone would be bad enough, but it turns out to be an increasingly common refrain.
The Quartz report points out that airlines from Southwest (LUV) to Ryanair (RYAAY) have gone on to complain about Boeing’s delivery schedules. It did not help that Boeing has also had several quality issues. And even some airlines, like United (UAL) have been calling for another aircraft maker to get in on the action and break up the Boeing/Airbus duopoly.
It Gets Worse
And then we got another report from Aviation A2Z, which represented another hit to Boeing. Apparently, airline company Emirates has been having trouble with its own fleet shortages, again owing to Boeing, who pushed back the first deliveries on its 777X line to 2026.
Emirates was then described as a “frustrated entity” and notes that it would already be flying an entire fleet of Boeing 777-9X aircraft…if any of them actually existed. Worse, there is fallout from Boeing’s lack of delivery here: Emirates notes that it had its “wings clipped,” as its expansion plans have been left hamstrung thanks to Boeing’s marked lack of delivery.
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 15 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 31.7% loss in its share price over the past year, the average BA price target of $193.38 per share implies 27.28% upside potential.
