'Buy, Buy, Buy, Buy, Buy, Buy, Buy. Fair Enough?': Boeing Stock (NYSE:BA) Slips as Jim Cramer Pounds the Table

Business Insider

2 days ago

Aerospace stock Boeing (BA) may have either just landed a huge win or walked into a disaster, largely depending on your point of view. Notorious stock analyst Jim Cramer came out in favor of Boeing recently, and had plenty of good things to say about it. Investors, meanwhile, started inching toward the exits, and sent shares down fractionally in Thursday afternoon's trading.
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Cramer, during the lightning round segment of his show, was asked about Boeing, and Cramer did not mince words. 'Here's my thoughts on Boeing, [buy, buy, buy, buy, buy, buy]. Fair enough?' That by itself made Cramer's stance pretty much crystal clear—perhaps one more 'buy' might have removed the ambiguity—but this actually builds on some earlier remarks.
Cramer delivered more extensive remarks last month, noting that Boeing stock was likely '…going much higher.' He rounded that out by noting that Boeing had '…just announced some huge second-quarter deliveries,' which it actually capitalized on by bringing out the numbers for July. But Boeing has not just been taking orders, it has also been filling them, as Boeing gets the production lines back up and running. With word that Boeing wants to get the Federal Aviation Administration to lift the production cap up a bit, that is a very welcome sign.
More Bang for the Buck
Meanwhile, Boeing is also looking into a potential change to its Patriot missile seeker line. It turns out that there is mounting demand for them, and so, Boeing is looking into new technologies and new production models to see if it can maximize the profit on a product line that is clearly going great guns, so to speak.
The problem with that is that Boeing might be about to kill a goose actively laying golden eggs. Changing the production plans could make things better. It could mean lower costs. It could mean faster production time. It could, if everything went just right, mean more missiles to sell at better profits. Or Boeing could taint the well on a major product line. Given how Boeing and production have gone for the last year or so, that might not be a risk to take.
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 19 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 32.29% rally in its share price over the past year, the average BA price target of $256 per share implies 9.96% upside potential.