Boeing (BA)

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Boeing reports 150 737 Max cancellations in March
https://m.youtube.com/watch?v=RCBzxTV0Eyc

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China's CDB Financial scraps purchase of 29 Boeing 737 MAX jets
https://www.reuters.com/article/us-boei ... SKBN222033

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Will Airlines Demand Cash Back From Boeing? We May Know Next Wednesday
https://www.marketwatch.com/articles/wi ... ck_seemore

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Boeing's stock surges after wider-than-expected loss and revenue miss, but free cash flow beat
https://www.marketwatch.com/story/boein ... ewer_click

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Boeing lands $25 billion debt deal
https://www.marketwatch.com/story/boein ... ck_seemore

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How Boeing went from appealing for government aid to snubbing it
https://www.reuters.com/article/us-boei ... SKBN22E025

[winston]

not vested

Boeing Company (BA)

The coronavirus epidemic, with the lockdowns, shutdowns, and travel restrictions governments have put in place to combat the spread, could not have come at a worse time for Boeing.

The aircraft manufacturer was already facing serious difficulty, due to the 13-month long grounding of the 737-MAX 8, the most popular model of its most popular commercial airliner.

Continuing production lines on other commercial jets and strong sales of the F/A-18E/F Super Hornet fighter were only partially compensating for the losses in the MAX 8 program.

The travel restriction put in place against COVID-19 pandemic are a bigger blow. Air travel is deeply depressed, and airlines are cutting routes, mothballing aircraft, and furloughing workers – and that has now trickled back to Boeing.

The company saw Q4 losses of $2.33 per share when the MAX 8 did not reenter production, and in Q1, with coronavirus in full swing, saw additional losses of $1.70 per share. Despite recording $16.9 billion in Q1 revenue, Boeing was in the red by $641 million. The company is now considering cutting the work rolls by 10%.

But Millennial investors are moving into BA shares. At first glance, it is hard to see why. While the overall markets have rallied since hitting the March 23 low point, BA shares have failed to gain traction. The stock is down 60% year-to-date, and has been trending downwards since early April.

This, however, also shows why Millennials are buying in. Boeing is at a 3.5-year low price, and the company remains fundamentally sound. While the MAX 8 lines are shut down, Boeing still produces the 777 and 787 airliner families, along with a variety of military and aerospace airframes.

With almost half of all the world’s operational airlines being Boeing products, commercial maintenance work alone will keep the company viable long term.

5-star analyst Josh Sullivan, of Benchmark, sees a strong case to buy into Boeing, and gives the stock a Buy rating. His $180 price target suggests an upside of 48% over the next 12 months. (To watch Sullivan’s track record, click here)

Defending his bullish stance, Sullivan also explains why Millennials – or anyone seeking a long-term holding – should look at Boeing. In particular, he points out that the company’s airliners will remain in demand, as they are essential to air travel networks: “The 737-MAX program is anticipated to begin production at low rates this year and climb to 31/month next ... Overall, the 737-MAX program carries the most weight and the adjustments in wide-body production provide a base-line.”

All in all, Wall Street is cautious on BA. The stock has received 18 analyst reviews recently, with a breakdown of 6 Buy, 11 Hold, and 1 Sell, making the consensus rating a Moderate Buy.

The 12-month average price target of $163.18, indicates confidence in a healthy 34% upside potential.

Source: TipRanks

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Boeing cutting more than 12,000 U.S. jobs, thousands more planned
https://www.reuters.com/article/us-boei ... SKBN2332EP

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Boeing, Airbus shares soar despite order drought
https://www.cnbc.com/2020/06/05/boeing- ... ought.html

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Boeing quietly pulls plug on 747 jumbo jets
https://www.theedgesingapore.com/news/a ... jumbo-jets