Boeing (BA) Lands 67-Jet Order From WestJet To Expand Fleet And Networks

Boeing (BA) has seen a notable price movement with an 11% increase in its share value over the last quarter. This uptick can be partly attributed to significant orders such as WestJet's acquisition of 67 additional Boeing jets, which reflects strong demand for the company's aircraft. Other client announcements, including orders from Macquarie AirFinance and Korean Air, have added to this positive momentum. Meanwhile, broader market trends such as rising stocks amid labor market data suggest that Boeing's gains also align with general market strength, indicating the company’s performance likely benefited from a combination of industry demand and favorable market conditions.

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The recent news of Boeing's substantial aircraft orders, particularly from WestJet, positively aligns with the company's narrative of capitalizing on robust global air travel demand and sustaining revenue growth. This increased demand is a tangible driver of Boeing's significant commercial backlog, indicating potential stability and growth in future earnings despite current financial challenges. The impact of these orders could enhance Boeing's competitive edge by supporting production rate increases for key models like the 737 MAX and 787, potentially aiding in improved margin recovery and financial flexibility.

Over a three-year span, Boeing's total return, including share price and dividends, reached 49.01%, providing broader context to its recent quarter uptick. In comparison, Boeing has outpaced the US Aerospace & Defense industry over the past year. However, the company's ongoing unprofitability, reflected in negative earnings of US$10.91 billion, underscores the need for careful assessment of its long-term growth assumptions. Analysts expect a transition to profitability, with earnings forecasted to reach US$7.1 billion by 2028 on stronger revenue streams. These projections, alongside the consensus analyst price target of US$247.88, suggest a cautious optimism but point to a modest 5.3% upside from the current share price of US$232.38.

Learn about Boeing's historical performance here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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