Boeing Stock (NYSE:BA) Plunges Despite Major New Contract Win - ’We Look Forward to Delivering’
Another day, another disconnect between corporate promises and market reality.
The Numbers Don't Lie
Fresh contract secured. Stock price tanks. Because nothing says 'investor confidence' like a double-digit percentage drop on what should be celebratory news. The market's voting with its wallet—and the verdict is brutal.
Execution Over Announcements
Wall Street's tired of press releases. They want planes that fly, deadlines met, and promises kept. Until then, every 'transformative contract' reads like another IOU in a growing pile of broken ones.
Because in today's market, delivery dates matter more than announcement dates—and Boeing's track record suggests investors might want to pack a lunch. A very long lunch.
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The new contract for another eight Grey Wolf helicopters is valued at $173 million. Boeing will provide not only the helicopters themselves, but also training and support services for them. Once assembled, Boeing will be delivering them across the United States to several Air Force bases. The first set of helicopters are set to head to North Dakota, where they will join the fleet at Minot Air Force Base.
So far, reports note, Boeing has delivered 18 of these, including a set of 12 “low-rate initial production assets.” Boeing looks to deliver another four before the year is out, with the rest to follow. Leonardo Helicopters senior program manager Robert Beyer noted, “By building on the trusted AW139 platform, we’ve been able to deliver a versatile aircraft to the warfighter that is already demonstrating its value to the U.S. Air Force. With each new lot, we are proud to continue strengthening national security missions while supporting American manufacturing and jobs.”
No Turkish Delight Here
But not all the news was so positive. Boeing is also facing mounting concern from Turkish Airlines. Its order with Boeing may ultimately fall apart if the engine supplier, CFM International, cannot pull through. There was some progress made in discussions between Turkish Airlines and CFM, reports noted, but it may not be enough to matter.
In fact, reports noted, Turkish Airlines may end up moving that business to Airbus (EADSY) instead. Ahmet Bolat, Turkish Airlines Chairman of the Board, noted, “If CFM continues its stance, we’ll change to Airbus. With Airbus I have choices.”
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 53.68% rally in its share price over the past year, the average BA price target of $256.80 per share implies 17.61% upside potential.
Disclosure
