Perhaps Beijing has reached the conclusion that fighting the United States in a tariff war just will not work all that well for it. After refusing planes from aerospace stock Boeing (BA) just days ago, and discovering a clamor of airlines willing to buy them out from under China’s airlines, China is now calling for “normal business cooperation” between itself and the United States. This did little for Boeing stock, though, which slipped fractionally in Tuesday afternoon’s trading.
The commerce ministry in China called for normal cooperation to resume, saying, “The U.S.’s wielding of tariffs has severely impacted the stability of the global industrial chain and supply chain, disrupted the international air transport market, and prevented many companies from carrying out normal trade and investment activities.”
Moreover, China wanted a return to what reports called a “…stable, predictable environment for trade and investment. “ But with Beijing still holding a 125% tariff on American goods, putting what reports called “dozens” of United States firms on trade control lists, and having recently started an anti-monopoly investigation into DuPont (DD), it suggests that such an environment will likely not be arriving any time soon.
Airlines as Aircraft Makers?
There may be another problem brewing in the background for Boeing, though the extent of the problem remains unclear at best. Earlier today, reports emerged about United Airlines (UAL) and its plans for the Z4, a blended-wing body aircraft that would allow it to be, effectively, like “…a living room in the sky.” United had plans to buy around 200 of these once it actually got them up and ready to go, sometime in 2030, at last report.
This may not mean the end for Boeing just yet; after all, most airlines are comparatively risk-averse, reports note, and the Z4 may not even be ready in 2030 as hoped, despite the successful flight of a commercial prototype. But, knowing that Boeing’s backlog extends back years, potentially even decades, and some airlines are getting tired of waiting, it may be the case that some other airlines will start looking into the idea of making their own aircraft, just like United.
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, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 8.32% rally in its share price over the past year, the average BA price target of $200.47 per share implies 10.27% upside potential.
