Things are really looking up for aircraft giant Boeing (NYSE:BA). At least, they are for now; Boeing landed a hefty new order for aircraft, and that’s got investors fired up to the point where they added nearly 2.5% to Boeing’s share price in Thursday afternoon’s trading.
Boeing’s big new order came from the Canadian military, who put in an order for up to 16 maritime patrol planes. That’s worth around $5.9 billion, and Boeing is set to fill said order with P-8A Poseidon aircraft. The initial order is for just 14 planes, and Canada has the option to buy another two. The P-8A Poseidon, reports note, is actually a derivative of Boeing’s 737-800 jet and will serve as a replacement for the CP-140 Aurora line currently serving in Canada. Those planes have been operational since the early 1980s, so it’s a safe bet they were either reaching or already reached their end.
Boeing Has Made Quite a Comeback
We know that Boeing has made quite a comeback over the last couple of years, from back when its primary stock in trade was largely grounded due to government reaction to COVID-19 and mechanical problems were almost a way of life. But it’s made progress since then, and analysts have responded accordingly. RBC Capital recently upgraded Boeing from Sector Perform to Outperform, and Deutsche Bank did likewise, thanks to a further acceleration of orders. However, Morgan Stanley was a bit less complimentary, pointing out issues in the supply chain that might hinder those orders from being filled.
Is Boeing a Buy, Sell, or Hold?
Overall, analysts have a Strong Buy consensus rating on BA stock based on 15 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 30.87% rally in its share price over the past year, the average BA price target of $249.67 per share implies 8.55% upside potential.