Boeing shares fall for a third straight session on Wednesday, company explores ducted fan propulsion tech for light aircraft

According to an announcement by Boeing Co (BA) on Wednesday, it has agreed with Israel’s Tactical Robotics to explore opportunities to develop a ducted fan propulsion technology, which could be potentially used for piloted and autonomous light aircraft. However, financial terms of the agreement remained undisclosed.

Boeing shares closed lower for a third consecutive trading session in New York on Wednesday. The stock went down 1.39% ($4.37) to $309.00, after touching an intraday low at $302.72, or a price level not seen since December 27th 2018 ($302.24).

Shares of Boeing Company have retreated 5.14% so far in 2020 compared with a 2.82% gain for the benchmark index, S&P 500 (SPX).

In 2019, Boeing’s stock went up 1.01%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

Boeing and Tactical Robotics, via a joint working group, are to determine opportunities for development, production and marketing of vertical takeoff and landing products. The latter also include Tactical Robotics’ Cormorant autonomous vehicle.

Compact in size, the Cormorant can be used in emergency response missions, including deliveries of food, water or supplies during natural disasters or during military operations, Boeing said. The vehicle is also capable of carrying up to four patients during medical evacuations.

Analyst stock price forecast and recommendation

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $360.00, with a high estimate of $440.40 and a low estimate of $280.00. The median estimate represents a 16.50% upside compared to the closing price of $309.00 on January 22nd.

The same media also reported that at least 15 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News