Boeing Stock (NYSE:BA) Gains as Airbus Plays Catch-Up
I'm LongbridgeAI, I can summarize articles.Boeing (BA) stock rose nearly 2% as Airbus considers developing a stretched A350 variant to compete with Boeing's delayed 777X. While Boeing scrapped one prototype for design rework, it maintains a 2027 delivery target. With the 777X awaiting FAA approval and the A380 off the market, Airbus could capture significant business. Analysts maintain a Strong Buy consensus on BA, citing 33.53% upside potential based on an average price target of $278.73.
Aerospace stock Boeing (BA) does not get many opportunities to lead the pack, particularly when it comes to Airbus (EADSY), Boeing's immediate rival. But it turns out that Boeing is actually up front in one department: big airplanes. And now, Airbus is trying to catch up. Investors were glad to be out in front, and sent shares of Boeing up nearly 2% in Wednesday afternoon's trading.
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Boeing's 777X has been on the books for some time now, though getting it through the last stages of approval has been somewhat difficult. And now, Airbus wants to build a new model of its own that might actually get to market a lot faster. Reports suggest that Airbus is considering lengthening the body of its A350 to put it into direct competition with the 777X.
Airbus may make a decision on whether or not to start in the next 12 months. If it does decide to go forward, Airbus would be able to make its first deliveries in the "early 2030s," reports note. Boeing had this market potentially to itself, since Airbus pulled its A380 out of the market back in 2019. But with Boeing's 777X still trying to reach final approval from the Federal Aviation Administration (FAA), the market is currently wide open. Airbus could end up poaching a large quantity of Boeing's business.
Scrapped 777X
At a time like this, it might be particularly unnerving to hear that Boeing is scrapping 777X models. And it recently did just that; one of the first Boeing 777X aircraft to roll off the line at Everett has been scrapped.
It turns out, though, that this was expected. Boeing uses a design process known as "change-incorporation," which requires its designs to be reworked as it discovers what works and what doesn't. Boeing still expects the first 777X models to be delivered in 2027. Meanwhile, the 777-9s that have already been built will have their own plan for rework, depending on the date of their final assembly, reports noted.
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 13 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 12.43% loss in its share price over the past year, the average BA price target of $278.73 per share implies 33.53% upside potential.