With planned layoffs now hitting aerospace company Boeing (BA), it begs the question of what Boeing will do after it finishes cleaning house. A new report suggests that Boeing may still have a future in space, though it may not look like what anyone expected.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Boeing’s space aspirations have not gone well. Starliner’s test flight did not work out well—it had been delayed on several occasions—and a slew of issues emerged. Issues in the propulsion system, the adhesive tape used proved unexpectedly flammable, and concerns about parachute safety all came into play.
But Boeing still has another six crew-rotation flight to launch before 2030, so getting things back up and running is vital to Boeing’s future in space. Yet, given that Boeing was the primary contractor for the development of the International Space Station back in 1995, it becomes clear that Boeing will likely not abandon its hopes for space altogether, despite periodic reports suggesting the company may sell its space business.
Closer to Earth
Separately, Boeing’s layoffs have expanded and workers in Arizona will not be spared from jobs cuts that will see around 17,000 total people let go. Perhaps the only real upside to this is that the impact will be delayed into 2025 for people employed in Arizona.
But, Boeing planes are still in demand. AIP Capital revealed that it, along with Phoenix Aviation Capital, landed a Boeing 787-9 on a long-term lease with American Airlines (AAL). This is the first such transaction between AIP and Phoenix, which routinely works to finance “modern, in-demand aircraft.”
Is Boeing a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 33.37% loss in its share price over the past year, the average BA price target of $193.62 per share implies 32.43% upside potential.
