Georgia-based Delta Air Lines (NYSE: DAL) is in talks to order up to 100 737 MAX 10 jets from Boeing Co. (NYSE: BA), Reuters reported, citing people with knowledge of the matter.
If the order is confirmed, it will be the first from Delta for Boeing’s 737 MAX single-aisle airplane family. The airline is the only U.S. carrier without a Boeing 737 MAX in its fleet.
If the two companies reach a deal, it could be announced as soon as next month, the sources said.
The 737 MAX 10, with 200 seats, competes with Airbus’ (EADSF) A321neo.
If this deal materializes, it could be a major boost for Boeing, which has been significantly impacted over the last two years due to COVID-19-induced lockdowns across the world. Notably, the Chicago-based company has bagged several orders lately.
BA stock closed 1.4% up on Friday at $192.83.
Wall Street’s Take
Last week, Robert W. Baird analyst Peter Arment assigned a Buy rating on the stock with a $306 price target (68.8% upside potential).
The analyst said, “While Omicron is causing lockdowns in China and domestic traffic is down 47% in the last three weeks, resuming deliveries in China is paramount for the company’s production rate plans for the 737-MAX and long-term fee cash flow recovery.”
Overall, the stock has a Moderate Buy consensus rating based on 13 Buys and five Holds. The average Boeing price target of $256.18 implies 40.8% upside potential. Shares have lost almost 25% over the past year.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 75% Bullish on Boeing, compared to the sector average of 69%.
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