Production and sales of Boeing Company’s (NYSE:
Over the past year or so, depending on who you ask, the answer is sometimes “yes” and sometimes “no.”
Freight Revival Underway
Back in April 2015 then Boeing CEO, Jim McNerney,
McNerney said, “We actually have a pretty good pipeline right now of cargo discussions going on. It’s premature to say we’re at the end of the program. I don’t think we are at all.”
At that time with airfreight volume rising in the double digits, McNerney noted that the increase in shipments would ultimately require new airplanes. Said McNerney, “So, I’m feeling better about it.”
Amazon Enters The Market
When Amazon.com Inc. (NASDAQ:
If so, the buys could boost sales for Boeing and help revive the giant airplane’s chances for a second wind. So far no 747s have joined Amazon’s tiny fleet, expected to be around 40 aircraft within the next 2 years.
A Real Move By UPS
The order from UPS, including options for 14 more planes, illustrates the resurgence in freight by former Boeing CEO McNerney, is real or at least real enough to keep 747s airborne for the foreseeable future.
Although similar sized 2-engine aircraft are more fuel efficient than the 747, the 747 has a huge advantage with its unique hinged nose that makes it possible to carry large cargo.
Boeing shares Thursday opened at $145.83 and closed down $2.23 or -1.53% at 143.31. The stock has a perform rating and “Buy” recommendations from both Zack’s and TipRanks.
Jim Cramer’s TheStreet, noting that Boeing reported better-than-anticipated 2016 third quarter earnings and revenue and raised its outlook for the full year Wednesday, also pointed out that Credit Suisse raised its price target on Boeing stock to $152 from $148 Thursday.
TheStreet rated Boeing stock as a “hold.”