Express logistics services provider DHL Express has ordered six more 777 Freighters from Boeing Co. (NYSE: BA). This order takes DHL Express’ order book for these freighters to 28.
Commenting on the order, Geoff Kehr, the Senior Vice-President of Global Air Fleet Management at DHL Express, said, “The Boeing 777 Freighter is the most fuel-efficient aircraft in its class and will connect DHL’s global hubs in Cincinnati, Leipzig and Hong Kong as well as serving other key markets.”
“The new aircraft will significantly contribute to our aspiration to reduce our greenhouse gas emissions to under 29 million tons by 2030,” he added.
Boeing’s Senior Vice-President of Commercial Sales and Marketing, Ihssane Mounir, said, “DHL Express’ continued confidence in the 777 Freighter is testament to the airplane’s outstanding capabilities in supporting global cargo demand.”
DHL placed the first order for these large widebody freighter aircraft in 2018 and has taken delivery of 15 of them so far. Compared to the traditional aircraft, the 777 freighter cuts greenhouse gas emissions by 17%.
About Boeing
Chicago-based Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. It also provides leasing and product support services.
BA stock closed 2.7% higher on Tuesday. It gained another 0.1% in after-hours trading to end the day at $174.
Analyst’s Take
On March 8, Goldman Sachs (NYSE: GS) analyst Noah Poponak reiterated a Buy rating on the stock with a $307 price target (76.6% upside potential).
The analyst said, “We expect a global air travel recovery to continue, including an acceleration in business and international, driving further new order momentum. While higher fuel prices negatively impact airline profitability, higher crude historically has also driven new orders for more fuel-efficient aircraft.”
Overall, Boeing has a Moderate Buy consensus rating based on 12 Buys and 5 Holds. The average BA price target of $256.56 implies 47.6% upside potential. Shares have lost 27.5% over the past six months.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 78% Bullish on Boeing, compared to the sector average of 68%.
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