Boeing (NYSE:BA) is nearing a $35 billion deal with Saudi Arabia’s sovereign-wealth fund, the Public Investment Fund. The jets will be used by Saudi Arabia’s new international airline, Riyadh Air, which was launched on Sunday.
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The deal, according to the report, relates to orders for about 100 airplanes, which include Boeing’s wide-body jets used in long international journeys. Furthermore, the article mentioned that Riyadh Air is looking for pilots for the new Boeing 787 Dreamliners.
This could be a big win for Boeing, which has lost some of its key customers to its European rival, Airbus SE (EADSY), in the past few years. It is worth highlighting that demand for Boeing’s jets has soared of late.
In February, Boeing received a large order from Air India that included 20 787 Dreamliners, 10 of its 777X, and 190 of the American giant’s 737 MAX jets. Moreover, in December 2022, United Airlines (UAL) ordered 100 787 Dreamliner airplanes from Boeing. Additionally, Boeing is close to making a deal with Japan Airlines for the supply of 20 of its 737 Max airplanes.
Is BA a Good Buy?
Boeing remains well poised to benefit from the rebound in air travel demand and the expansion of defense budgets. Also, the Federal Aviation Administration recently allowed Boeing to resume deliveries of 787 Dreamliners, which were stopped on February 23 after a data-analysis error was discovered.
According to analysts, Boeing stock is a Moderate Buy based on 10 Buy and five Hold recommendations. The average BA stock price target is $234.33, implying an upside of 15.4%.
