Cathay Pacific’s 777-9 Jet Order Could Be a Game Changer for Boeing (BA)

• Cathay Pacific recently announced an order for 14 additional Boeing 777-9 jets, bringing its total commitment to 35 of these next-generation widebody aircraft designed to improve fuel efficiency and reduce environmental impact.
• This significant order reflects continued confidence from major airlines in Boeing’s 777X program, supporting both the company’s production outlook and wider industry trends towards sustainable fleet upgrades.
• We'll explore how Cathay Pacific's major 777-9 order supports Boeing’s long-term growth narrative and addresses demand for fuel-efficient aircraft.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Boeing Investment Narrative Recap

To invest in Boeing, shareholders need to believe that the company can restore profitability through production stabilization, strong demand for new aircraft, and a growing commercial order backlog. The Cathay Pacific 777-9 order highlights healthy demand for next-generation jets, but this alone does not materially offset Boeing’s largest short-term risks, including continued negative margins in its commercial division and pressure on earnings due to operational and supply chain issues.

The most relevant recent announcement is the July 28 lease agreement with SpiceJet for five Boeing 737 aircraft, showing continued demand for Boeing’s single-aisle jets despite the ongoing certification challenges. While additional orders and leases signal industry appetite for Boeing models, near-term financial results remain sensitive to production and margin recovery amid ongoing product delays and execution challenges.

However, investors should also be aware that, despite new orders adding momentum, ongoing negative margins in Boeing’s core commercial airplane division could...

Read the full narrative on Boeing (it's free!)

Boeing's outlook anticipates $114.4 billion in revenue and $7.1 billion in earnings by 2028. Achieving this projection requires annual revenue growth of 14.9% and an earnings increase of $18 billion from current earnings of -$10.9 billion.

Uncover how Boeing's forecasts yield a $247.88 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Seventeen fair value estimates from the Simply Wall St Community for Boeing range from US$149 to US$332.62 per share. Many market participants see Boeing's multi-billion dollar order backlog as a foundation for growth, but persistent losses in commercial operations could impact recovery, inviting you to compare these sharply different viewpoints.

Explore 17 other fair value estimates on Boeing - why the stock might be worth 37% less than the current price!

Build Your Own Boeing Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Boeing research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Boeing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Boeing's overall financial health at a glance.

Looking For Alternative Opportunities?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The end of cancer? These 26 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• This technology could replace computers: discover 24 stocks that are working to make quantum computing a reality.
• AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com