Boeing Stock Rated as Hold Due to Overvaluation
"So, I've calculated a fair value for this business using my proprietary discounted cash flow valuation model of $161 per share. The current market price is $212 per share after the stock is down about 2% today. I see this business even after applying a margin of safety, I see this business being overvalued. On top of that, I've also decreased the company's beta by multiplying it by 0.85 because I see this business as being less risky than the beta suggests. Still, the stock looks overvalued and I'm not rating this business as a buy. In fact, to update my recommendation, I'm keeping Boeing stock rated as a hold."
The speaker assigns a fair value of $161 per share to Boeing versus its current trading price of $212, indicating the stock is overvalued. Despite improvements in manufacturing efficiency and reduced beta assumptions to reflect lower future risk, the overvaluation leads to a hold rating rather than a buy recommendation.
Boeing Benefits from FAA Regulation Easing
"Let's talk about Boeing, which has been in the news this week. Yeah, it is a bright spot today. The stock is up about 4.1 percent right now. The Federal Aviation Administration said that it will give it more leeway to perform some safety checks on its notorious 737 MAX plane. Prior to delivery, obviously, they've struggled with safety issues after multiple crashes with that plane. The FAA will delegate more of its routine inspections to the planemaker. And they also asked for permission for more output on this plane. It's currently capped at about 38 a month, and they want to see it move to a rate of 42 by the end of this year."
Boeing is receiving a boost as the FAA eases checks on its 737 MAX and permits a production increase, which has positively influenced investor sentiment.
Boeing Order from Uzbekistan Airways Boosts Sentiment
"Boeing rallying today. We are seeing shares of Boeing higher. That's ticker BA. Shares are up about 2% right now in trading. Lots of activity and chatter in the market. And this is especially after this idea that it'll be securing an order from Uzbekistan Airways. ... it's good for the company to hear about these orders. Great for investors especially."
The transcript highlights Boeing (BA) experiencing a rally partly fueled by news of a potential order from Uzbekistan Airways and the broader narrative of recovery from last year’s losses. This positive catalyst is seen as supportive of investor sentiment.
Boeing Secures Key Order and AI Partnership
"Boeing, also a good day for today. The stock closed higher by 2%, ticker is BA. ... secured an order from Uzbekistan Airways and the U.S. ambassador to China indicated that a major order is close to being finalized. Separately, Boeing also said that it will partner with Palantir to integrate, again, AI on current and future defense programs."
Boeing is cited for solid trading performance with the stock up by 2% following confirmation of a large aircraft order and potential major deal, as well as its new partnership with Palantir to integrate AI into defense programs. These developments add a bullish catalyst for the company.
Boeing in Negotiation for Major Aircraft Order
"This comes after some news that the U.S. and China are in final stages of negotiation for a huge Boeing aircraft order. Boeing shares up nearly 3% so far in pre-market trade."
Boeing appears to be benefiting from ongoing negotiations with China for a potential order of up to 500 aircraft. This development is acting as a catalyst, as evidenced by pre-market gains, suggesting improved investor sentiment.
Boeing Appears to Have Turned the Corner
"One of my other fun names is Boeing. Fun name's Boeing. It's fun because I love aircraft and I just I've been waiting for Boeing to turn the corner. And I think they've clearly turned the corner if you look at the stock price. And they're benefiting from if you want to ingratiate yourself to President Trump, buy a lot of our stuff. And if you want to rack up a big bill, a big deal, a big headline, buy aircraft because they're expensive. So yeah, absolutely. Paul, and that's exactly what's happening to Boeing at the moment of those shares. Ticker BA up nearly 3% at the moment. And, you know, we did get a couple of pieces of good news related to aircraft purchases. So one is the fact that it has secured an order from Uzbekistan Airways. There you go. So they have a deal for as many as 22787 Dreamliner jets. And then at the same time, it seems like we're getting some traction on a potential U.S.-China deal as well for purchases of Boeing aircraft."
Boeing (BA) is highlighted as having "turned the corner" with renewed momentum in its stock performance, now up nearly 3%. The commentary noted sizeable orders including a major deal with Uzbekistan Airways and potential US-China negotiations, which underscores a bullish view on the aerospace giant.
Boeing Secures Landmark $8 Billion Order from Uzbekistan Airways
"Boeing announcing the deal yesterday, noting it was the airline\'s single largest order to date... Under the terms of the agreement, Uzbekistan Airways will purchase 14 787.9 airplanes. They also have the option for eight more."
Boeing has announced a significant contract with Uzbekistan Airways, valued at over $8 billion. This deal, which involves the purchase of 14 787.9 airplanes (with an option for eight more), is seen as a major positive catalyst for the company, bolstering its near-term business outlook and potentially driving bullish sentiment among investors.
Buy Boeing on Breakout Above Friday"s High
"I think if Boeing got above Friday's high, that could be used as an early entry. It’s showing a nice bounce off the 21-day line and setting up what looks like a flat base, suggesting that a breakout play might be in order."
The discussion outlines a buy signal for Boeing. The actionable trade call is to buy if the stock breaks above Friday's high, with the stock already trending above its 50-day moving average and showing a technical base formation that supports a breakout.