Reuters has learned that Boeing is close to inking a deal with Southwest Airlines Company for its 737 MAX 7 jets. Though the timing and financial terms of the deal are still unknown, the order from Southwest Airlines could be worth billions.
Citing sources familiar with the matter, Reuters reported that Southwest Airlines (LUV) could order dozens of 737 MAX 7 jets as it is looking to replace its aging jets.
Earlier this week, Boeing (BA) announced that it delivered 22 aircrafts in the month of February, up from 17 in the year-ago period. The company booked 82 new orders in Feb. 2021 and registered 51 cancellations. (See Boeing stock analysis on TipRanks)
On Mar. 9, Cowen & Co. analyst Cai Rumohr maintained a Hold rating and a price target of $225 (8.3% downside potential). In a note to investors, the analyst said, “February’s O&D [Orders & Deliveries] report was marginally positive in that net orders (ex ASC 606) were positive for the first time in 16 months (although they were positive in December with ASC606). Deliveries were lackluster and included 18 MAXes (vs. 21 in January) but no 787’sgiven ongoing fuselage join issues.”
Overall, consensus among analysts is a Moderate Buy based on 8 Buys, 7 Holds and 3 Sells. The average analyst price target of $238 implies downside potential of about 3% to current levels. Shares have gained 8% in the last year.