Another blow to aerospace stock Boeing (BA) hit recently, though it was one we likely all saw coming. Boeing faces surging tariffs in Europe if some upcoming trade deals fail to come to fruition, and that will send aircraft prices absolutely soaring. Investors took it all mostly in stride, though, sending shares down modestly in Wednesday afternoon’s trading.
The tariffs will include not only Boeing aircraft, but also cars made in the United States, with a total of around $114 billion in American-made goods on the block. Member states in the European Union will be looking at the list of products this week, reports note, and a “consultation process” lasting about a month will follow. During that period, the list may be adjusted to take some items out of consideration for tariffs altogether.
But Boeing’s tariffs will likely stay in place, reports note, as the United States put tariffs of its own on planes from Airbus (EADSY), Europe’s top aircraft manufacturer and Boeing’s direct rival. The EU regards this as a way to “level the playing field” between the duo, though really, given that the two are basically a duopoly at this point, it is easy to wonder how necessary such a move was. Of course, this could all prove a moot point if trade talks go well.
Lego My Boeing
Meanwhile, Boeing landed a PR win with an unexpected spinoff: Lego. A Boeing 747 will be part of the Space Shuttle Enterprise set, a 2,417 piece Lego kit that features not only the Boeing plane, but also the space shuttle. Together, the duo represent the combination that NASA uses to test and move space shuttles all over the United States.
The set, part of the Lego Icons Shuttle Carrier Aircraft line, will run $229.99 together. Lego Insiders will be able to buy the kit three days early, reports note, with the set going into wide release May 18. Early commentary on the kit suggests most are looking forward to it, though it also points out why Boeing needs a PR win right now. One commenter noted, “Just hope there are no issues with the Lego cabin doors.”
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 14 Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 1.97% rally in its share price over the past year, the average BA price target of $200.47 per share implies 8.86% upside potential.
