After all the disasters that Boeing (NYSE:BA) took over the last three years or so, it was just starting to look like it was turning things back around. At least, it was, until Singapore Airlines (OTCPK:SINGF) pulled the rug out from under Boeing by canceling its latest order. However, Boeing investors took this largely in stride, as Boeing only lost a little over 1% in Tuesday afternoon’s trading.
The word from Singapore Airlines noted that previously-placed orders for eight 737-8 passenger jets from Boeing were canceled outright. However, in what might have been a perfect explanation of why stockholders weren’t running for the exits, Singapore Airlines also modified a separate order of three 787-9 Dreamliners to three 787-10 versions instead. The 787-10 is a bigger version of an already larger plane. Singapore Airlines explained that the move was in keeping with its long-term strategy and that it will shortly have 100 separate aircraft under its purview.
The news comes at an odd time for Boeing, as Titan Airways reported that it just retired its last 757-200 model aircraft on May 11. Now, Titan is completely an Airbus (OTHEROTC:EADSF) operation. And with Delta (NYSE:DAL) also considering bringing in new planes from Airbus, that’s going to put extra pressure on Boeing to find new customers to try and get some market share back from Airbus.
Despite this, analysts are still largely on Boeing’s side. The 10 Buy ratings and five Hold make Boeing stock a Moderate Buy by analyst reckoning. Further, Boeing stock offers investors a 19.04% upside potential thanks to its average price target of $238.40
