Still Waiting: Boeing Stock (NYSE:BA) Slips as Boeing Deliveries Hold Up Flydubai
In a bit of news that proves that, perhaps, China's airlines were perhaps a bit short-sighted when they refused delivery of a set of completed airplanes, Flydubai released word that Boeing's shipping schedule is holding up the works on the airline's launch. The news did little to hurt or help Boeing shares, which slipped fractionally in Wednesday afternoon's trading.
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Currently, reports noted, Flydubai is waiting for 30 787 aircraft to be supplied. That in turn is slowing the works on Flydubai's planned expansion into the long-haul market, as these are the first wide-body aircraft that Flydubai had ever added to its roster. In fact, Flydubai is sufficiently put out by this delay that it may plan to seek compensation from Boeing for having a delivery schedule that more closely resembles tree growth than an actual calendar.
Flydubai agreed to an $11 billion deal for the 787-9 twin-aisle aircraft, from a deal it set up during the 2023 Dubai Airshow. Given that the 2025 Dubai Airshow will take place in mid-November, that means it has been close to two years since they signed that deal, and they are still waiting on delivery. But given other reports that Boeing's backlog stretches back potentially decades, Flydubai probably should have expected this. But Flydubai notes that it has a 'beautiful relationship' with Boeing, and notes, '…there is never any issue we cannot resolve.'
An Unexpected Endorsement
That was interesting enough, but then, Boeing got an endorsement from one of the most infamous names in stock punditry: Jim Cramer. Cramer recently declared that Boeing shares should climb '…higher and higher,' and offered up some reasons for his assessment that were actually quite reasonable.
Cramer notes that Boeing's production schedule is getting back on track, and becoming more predictable, a point that we have already seen taking shape over the last few months. Cramer even went so far as to add the stock to the Bullpen, reports noted, as a possibility emerged that countries may try to avoid tariffs by buying a Boeing plane.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 6.25% rally in its share price over the past year, the average BA price target of $200.47 per share implies 10.05% upside potential.
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