Shares of Boeing Co (BA) touched highs not seen in two weeks on Friday following reports in the media that the Federal Aviation Administration (FAA) anticipates to approve the grounded 737 MAX to return to service as soon as late June.
Boeing shares closed higher for the seventh time in the past twelve trading sessions in New York on Friday. The stock went up 1.24% ($4.35) to $354.90, after touching an intraday high at $361.40, or a price level not seen since May 8th ($361.52).
Shares of Boeing Company have surged 10.05% so far in 2019 compared with a 12.73% gain for the benchmark index, S&P 500 (SPX).
In 2018, Boeing’s stock went up 9.36%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
On May 23rd representatives from the Federal Aviation Administration and Boeing Co held a private meeting with members of the International Civil Aviation Organization’s governing council in Montreal in relation with the 737 MAX. On that same day Dan Elwell, the FAA’s acting administrator, held an 8-hour meeting with international air regulators in Fort Worth, Texas.
”The dialogue is shifting more towards when the aircraft can get back into service as opposed to if,” Morgan Stanley analyst Rajeev Lalwani wrote in a note to investors, cited by Reuters.
”With shares down about 20% from their recent highs … and the risk-reward skewing more favorably, we are comfortable with our “overweight” rating and price target of $500,” the analyst also noted.
In case the 737 MAX is allowed to return to service by the end of June, air carriers such as United Continental Holdings Inc, American Airlines Group Inc, and Southwest Airlines Co among others would probably not be forced to extend flight cancellations, which have already been put in place for the busy summer season.
According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $434.00, with a high estimate of $505.00 and a low estimate of $367.00. The median estimate represents a 22.29% upside compared to the closing price of $354.90 on May 24th.
The same media also reported that 14 out of 25 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 8 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:
Central Pivot Point – $352.48
R1 – $363.81
R2 – $372.72
R3 – $384.05
R4 – $395.38
S1 – $343.57
S2 – $332.24
S3 – $323.33
S4 – $314.42
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