It turns out that converting a passenger jet to a cargo liner is not as easy as pulling out the seats. Aerospace stock Boeing (BA) found one of its biggest names the subject of such conversion recently, as Mammoth Freighters landed a certification from the Federal Aviation Administration. This did not sit well with Boeing investors, who sent shares sliding modestly in Friday’s trading.
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The 777-200LR was not exactly an iconic aircraft, and was more frequently thought of as a “niche” aircraft. Specifically, that niche was ultra-long-haul routes. Only a handful of airlines would actually use them. But that same niche proved a smart idea for a different use case: cargo transit. And so, Mammoth Freighters got to work converting the 777-200LR into the 777-200LR(MF).
The Federal Aviation Administration (FAA) approved the design, and certified the aircraft for flight. This allows Mammoth to offer what it calls a part of an “…expansion of (its) next-generation widebody freighter solutions.” The resulting platform now offers “…a compelling combination of long-range capability, payload efficiency, and operational reliability,” which will make Boeing look almost as good as Mammoth will.
Melania Gets a Jet Too
We know that Boeing’s efforts to get a new Air Force One in place have not exactly gone well. But it turns out that First Lady Melania Trump is also in line to get her own Boeing as well. The BBJ Max 8 was originally able to carry 160 passengers. Now, it has been retooled to carry just 17 passengers, operating as a “residence-style jet.”
The plane carries bedroom space, as well as multiple lounges designed to get people talking. It offers club seating and adjustable tables, all designed to spark conversation. This is particularly appropriate for a First Lady aircraft, being as the First Lady is commonly focused on social causes during a President’s tenure.
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 14 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 40.31% rally in its share price over the past year, the average BA price target of $274.92 per share implies 26.71% upside potential.
