Aircraft manufacturers Boeing (NYSE:BA) and Airbus (EADSY) (DE:AIR) have received an order to supply about 470 jets to India’s largest international airline, Air India Ltd. This marks the world’s largest aircraft deal and would cost Air India about $70 billion.
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Individually, Boeing will supply 220 planes, which will consist of 10 of its 777Xs, 20 of its 787 Dreamliners, and 190 of the American giant’s 737 MAX jets. Additionally, Air India still has the option to buy an additional 20 B787 and 50 B737MAX planes.
On the other hand, Airbus will be providing 40 wide-body A350 planes and 210 narrow-body A320neo family planes. As per a WSJ report, Airbus is planning to increase the production of two of its big-sized planes that offer higher fuel-carrying capacity. The decision was made primarily in response to an order from Air India and projections of a pickup in demand for long-distance travel.
The news reflects positive signals about the airline industry, whose performance was largely marred by the pandemic. The sector has been benefitting from a resurgence in commercial travel along with the reopening of China’s borders.
Is BA a Buy or Sell?
BA stock has a Moderate Buy consensus rating on TipRanks based on 10 Buy and five Hold recommendations. Meanwhile, analysts’ price target of $234.33 implies a 7.3% upside potential.
Boeing is expected to benefit from the rising defense budgets of several countries seeking to upgrade their aircraft and weapons.
Is Airbus a Good Investment?
Analysts are cautiously optimistic about Airbus stock. This is based on seven Buy, three Hold, and three Sell recommendations. The average price target of €137.92 implies upside potential of 19% from the current level.
