This is actually a rather exciting idea for aerospace stock Boeing (BA), but it is not one that investors are taking very well. Boeing announced an exciting new play to convert old 747-8 jets into a powerful new class of private jets in what amounts to the ultimate “upcycling” play. Investors, though, did not much care for it, and sent shares down fractionally in Wednesday afternoon’s trading.
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It is called the 747-8 Turnkey program, and it will take former commercial 747s and clean them up via what reports call a “…custom interior refurbishment.” Then, following an engine overhaul, the jet is delivered to the client, and the client gets a private jet with around 5,000 square feet of space to it. These jets also have a range of 8,875 nautical miles, which all but ensures that any city pair in the world will be reachable with the jet’s standard range.
President of Boeing Business Jets, Joe Benson, noted, “The 747-8 continues to serve as a premier VIP and head of state aircraft and discerning customers are interested in continuing this tradition of excellence in private air travel.” Though what this means for airports if suddenly a lot of new private jets with 747 measurements come into play is, at best, unclear.
Striking Back, Harder
Meanwhile the St. Louis strike continues in earnest, and the difference in Boeing’s response is noteworthy. Word from the chairman of the sociology department at Washington University, Jake Rosenfeld, says that Boeing’s response to the St. Louis strike has been a lot tougher than the previous strike’s response last year.
Rosenfeld elaborated, “This is another setback that, as it drags on, could continue the narrative that this is a company that cannot get out of its own way.” However, he also noted, “I think the company has benefited from a lack of broader attention to this particular strike. That has helped them kind of really dig in and really hold the line against workers’ requests.”
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 38.35% rally in its share price over the past year, the average BA price target of $259.08 per share implies 20.95% upside potential.
