Ever heard of snatching victory from the jaws of defeat? That’s what Boeing (NYSE:BA) did today, as just when news emerged about its poor delivery schedule, it was also able to announce a huge new offer at the same time. Investors were marginally happy with the results, as Boeing was only down fractionally in the closing minutes of Tuesday’s trading session.
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At first, it looked like a disaster was brewing for Boeing. Yes, again. Anyway, Boeing announced that, for the month of August, it delivered 35 planes in total. That’s the lowest number of deliveries Boeing saw in the last four months and featured 22 737 Max planes. It also included five 787 Dreamliners, five 767s, and three 777 freighters. Worse, that brought Boeing’s total up to 344 planes delivered, a far cry from the 433 delivered by chief rival Airbus (OTHEROTC:EADSY).
But then the good news hit, as SMBC Aviation Capital put in an order for 25 737 Max planes. That one transaction almost matches the entirety of August’s shipments and represents about $3.7 billion in business for Boeing at today’s prices. That also puts total orders of the 737 Max at 81 planes, or nearly three times what August’s orders were. SMBC noted that there was “clear long-term demand” for the 737 Max, and thus, it ordered accordingly. And that’s on top of the 50 planes ordered just yesterday from Vietnam Airlines.
The news came at a good time for Boeing, but analysts were already mostly convinced. With 10 Buy ratings and four Holds, Boeing stock is considered a Moderate Buy by analyst consensus. Further, Boeing stock offers investors 24.06% upside potential on its average price target of $261.15.
