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Boeing shares close lower on Friday, American Airlines orders 47 widebody aircraft

American Airlines reportedly ordered 47 new 787 Dreamliner aircraft from Boeing Co, thus, choosing the US plane maker over its European rival Airbus amid a contest between the two companies for the highly coveted widebody jet order. The deal is estimated at over $12 billion.

Boeing shares closed lower for the fifth time in the past eight trading sessions on Friday. It has also been the steepest daily loss since March 22nd. The stock went down 3.06% ($10.28) to $326.12, with the intraday high and the intraday low being at $334.59 and $322.21 respectively.

In the week ended on April 8th the shares of the aircraft maker lost 0.54% of their market value compared to a week ago, which marked the fourth drop out of eight weeks.

“This new order is a powerful endorsement of the 787 family’s unique passenger appeal and unmatched ability to help airlines open new routes and grow profitably”, Kevin McAllister, Boeing Cos Chief Executive Officer, said in a statement, cited by Reuters.

“This was a difficult decision between the Boeing 787 and the Airbus A350 and A330neo and we thank both manufacturers for their aggressive efforts to earn more of American’s business. In the end, our goal to simplify our fleet made the 787 a more compelling choice”, Robert Isom, American Airlines President, said in a reference to the deal.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $395.00, with a high estimate of $470.00 and a low estimate of $240.00. The median estimate is a 21.12% surge compared to the closing price of $326.12 on April 6th.

The same media also reported that 12 out of 25 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 10 – as “Hold”.

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