Great news for Boeing (NYSE:BA), as the beleaguered aircraft maker saw shares surge over 3% in Monday afternoon’s trading session. The combination of an upcoming bond sale and some new talks to sell aircraft came together to give Boeing a leg up in the session.
First came word of Boeing’s first bond sale since it reported its quarterly loss. With multiple credit ratings agencies slashing rates to near-junk levels, it was something of a point of contention how well it would ultimately do. The latest reports suggest “surprisingly well,” as Boeing brought in about $77 billion worth of orders for its latest bond sale.
Given that Boeing was looking to raise around $10 billion in maturities, that’s quite a brisk reaction. Reports note that the bonds will range from three years to 40 years in term, and the 40-year bond will pay 2.25 percentage points more than Treasury bills.
Big New Sale Afoot?
Meanwhile, despite concerns about airplane quality, Boeing sales are still pretty brisk. Boeing is currently in talks with Turkish Airlines to sell at least part of a new fleet of 235 airplanes. Turkish Airlines is out to expand, and is also talking with Boeing rival Airbus (OTHEROTC:EADSY) to fill out the package. Considering that Airbus already sold Turkish Airlines 355 aircraft recently—both A321 narrow- and A350 wide-body aircraft—Boeing will basically be bidding on whatever Airbus can’t fill. Not the best position, but a sale is a sale.
Is BA a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 16 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 15.19% loss in its share price over the past year, the average BA price target of $226.28 per share implies 30.72% upside potential.
Is It Wise to Allocate $1,000 Toward BA Stock Right Now?
Before you hurry to invest in BA, think about the following:
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