Many have been asking so here it is, the breakdown on $BA otherwise known as Boeing.
Current Price: $180.08
52/Wk High: $391.00
52/Wk Low: $89.00
Read below for the breakdown.
$BA is a legendary company but the stock, industry, and business has taken a beating the past few years.
From the 737 Max 8 crisis to the pandemic the company has been hit every which way. Due to these factors, the stock was hit hard and dropped to a 52/Wk low of $89.00/share in March.
On the bright side, the aerospace giant is making a slow comeback. Just days ago the FAA completed test flights of the 737 Max 8, their new flagship aircraft, after 15 months of being grounded.
Not only that but it seems $BA is confident in the aircrafts comeback and airlines are slowly recovering after the pandemic battered them.
While Boeing has much further to go these new steps, including a leadership change in the midst of their troubles should lead the company out of the trench over the next few months and years.
Although the comeback is starting, earnings still have yet to show a huge leap in the path to recovery. $BA missed in the Q1 earnings report with a $-1.70 EPS versus the expected $-1.61 EPS. Revenue also came in lower at $16.9 billion.
$BA is well-positioned in the case of cash on hand. In the case of further headwinds, the company has created a huge $15.527 billion cash on hand position as of March 31, representing a 100.89% YOY increase.
The bullish news does not stop there either. Analysts are bullish with the average current price target coming in at $191.31/share representing 6.24% upside. Furthermore, the high price target is $277.00/share and low is $110.00/share, so analysts are widely divided.
The big money on the other hand is not as bullish. Currently, 57.90% is owned by insiders and institutions. Top holders include BlackRock, Capital International Investors, and Capital World Investors.
Overall long term I like the stock. If Boeing can get the Max 8 back in the air, I think the stock could run big. On the other hand, the firm has received some cancelations in orders, like Norwegian Air’s cancellation of their contract a few weeks ago.
In short, I think the banks will report badly next week and pull the market down. Secondly, with rising COVID cases I think that will further pressure another correction in Boeing. I am a buyer on a pullback, but right now I am holding out for a better price.
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Disclaimer: This is not direct financial advice, simply opinion based on independent research.