Boeing Stock (NYSE:BA) Slips Despite New Interest in 777s

One of the best things about aerospace stock Boeing (BA) is the sheer versatility of its product line. For instance, the 777 jet has a variant that works as a cargo hauler. And 21 Air is interested in picking up a slate of these aircraft to augment its own cargo hauling operations. This did not do much for Boeing stock, though, as shares slipped fractionally in Thursday afternoon’s trading.

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21 Air is known as a mid-size cargo airline that handles air delivery for some major names, including Amazon (AMZN). And 21 Air has an eye toward branching out into international operations, which means it will need a new kind of aircraft better suited toward making those trips and carrying packages in the process.

Originally, 21 Air had a comparative handful of freighter aircraft. And right now, Amazon currently controls the aircraft that 21 Air uses to operate on Amazon’s behalf, reports note. But 21 Air is looking to expand its own stable of aircraft, and as such, is turning to Boeing’s 777. There is one issue, though, as 21 Air will need to be certified to operate the 777. It hopes to be ready to do just that before 2026 is out.

Wells Fargo Steps In

Meanwhile, Boeing landed an excellent recommendation from analysts at Wells Fargo. Analysts therein started coverage of Boeing with an Overweight rating as well as a price target of $250 per share. That represents a substantial premium over current trading levels.

Wells Fargo analysts look for Boeing’s cash flow to improve substantially once production settles into place. Given that Boeing is showing negative free cash flow of $1.88 billion over the last year, it will indeed require a substantial recovery to just get cash flow back to positive territory. But with Boeing already bringing out greater numbers of 737 MAX aircraft, as well as 787 aircraft, reaching those higher targets may not be out of line.

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 14 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 37.38% rally in its share price over the past year, the average BA price target of $274.92 per share implies 32.8% upside potential.

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