So we have been following the impact of the Air Force One deal for aerospace stock Boeing (BA) for some time now, and it has started to take on a whole new life. President Trump’s move to accept a plane from the Qatari government has started to catch attention, and more than a little fire. But despite this blow—which is ameliorated by the fact that the Qatari jet is itself a Boeing—investors stuck with Boeing, and shares gained nearly 2% in Monday afternoon’s trading.
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The current Air Force One, noted President Trump, is 40 years old. So not surprisingly, Trump reached out to Boeing for a pair of new ones. But Boeing, in what we have come to discover is true Boeing fashion, inserted the order into its backlog, and has been sitting on it ever since. Now, after a second Trump administration stepped in and got personally involved, the next Air Force One is now set to be delivered in 2027, almost after the second Trump administration ends.
Then Qatar stepped in, offering what it called “a palace in the sky,” a jet for the President to use during his tenure. Once that time closed, it would enter the Trump presidential library, reports noted. The deal is reportedly under consideration, but it is drawing no shortage of ire. Meanwhile, reports note that the Air Force is already in talks with Boeing to modify requirements and get the new Air Force One ready to go before the Trump administration departs for good.
An Unexpected Problem with Quieter Engines
And then, in a move that shows that sometimes you cannot win for losing, a new report revealed that Boeing’s plan to design quieter engines cost it the use of “serrations” in the back of the engines. The old models, reports noted, looked like shark teeth, but those are gone now as part of Boeing’s new push for quieter engines.
Reports noted that, while the old system—known as “chevrons”—did produce noise reduction, it did not offer a benefit for aerodynamics. So basically, while the engines were quieter, that silence came at the cost of slightly lower efficiency rates. With air travel typically won or lost on fractions of a point, the quieter operation at slightly higher inefficiency resulted in a new loss, reports noted.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 14 Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 9.2% rally in its share price over the past year, the average BA price target of $201.65 per share implies 2.56% upside potential.
