Great news landed for aerospace stock Boeing (BA), as it landed a pair of new deals that give Boeing that much more backlog to address. With airlines in Bangladesh signing on, and SCAT Airlines also on board, Boeing picked up new customers outright. Investors were clearly pleased, and added nearly 2.5% to Boeing stock in Thursday afternoon’s trading.
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The first major deal was with Biman Bangladesh Airlines, which represents not only a big win for Boeing, but also a loss for Boeing’s immediate rival Airbus (EADSY). Biman, as it turned out, was considering buying from Airbus before Boeing managed to make inroads with the airline as trade pressure mounts from Washington.
Terms of the deal were kept fairly quiet. There was a mix of narrow-body and wide-body aircraft involved, though just what proportions of either was never revealed. The total value of the contract was also kept quiet. However, we do know that the aircraft will be delivered in phases. This is good news as Boeing has such a massive backlog that anything ordered today is absolutely going to take a few years to get delivered.
Another Big Order
Meanwhile, Boeing also picked up an order for five 737-9 jets from SCAT Airlines. SCAT seems to have a particular fondness for that aircraft, as they also converted five 737-8 jets from a previous order to become 737-9 jets instead. With these extra aircraft, reports note, SCAT will step up its long-haul capability out of Kazakhstan and into wider parts of Europe and Asia.
JSC SCAT Airlines president Vladimir Denissov noted, “Converting five of the previously ordered 737-8s to 737-9s, together with the new firm order for five 737-9s, enhances our seating capacity per flight and will improve schedule reliability as we expand our international network.”
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 16 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 22.54% rally in its share price over the past year, the average BA price target of $274.57 per share implies 19.9% upside potential.
