ANA Holdings Inc said it had ordered 15 additional 787 Dreamliners from Boeing Co (BA) valued at $5 billion at list prices. This is the first commercial order, which Boeing announced this year, as it took no orders in January.
Boeing shares closed lower for an eighth consecutive trading session in New York on Tuesday. It has also been the steepest single-session loss since October 18th 2019. The stock went down 4.33% ($13.76) to $304.14, after touching an intraday low at $303.73, or a price level not seen since January 22nd ($302.72).
Shares of Boeing Company have retreated 6.64% so far in 2020 compared with a 3.17% loss 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.
ANA placed orders for eleven 787-10 stretch versions of the jet and for four 787-9s. The company also has options for additional five 787-9 jets. The air carrier expects to take the first delivery of the jets during the business year that begins in April 2022.
The newly ordered jets would bring ANA’s purchase total to 98 aircraft, with 71 of them being in service.
Being the largest 787 operator globally, ANA Holdings Inc has included all three models of the jet in its fleet – the 787-8, 787-9 and 787-10.
“As the 787 becomes a larger share of our fleet size, we have made the decision to diversify some of the components to minimize single source risks,” a spokesperson for the air carrier was quoted as saying by Reuters.
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 $350.00, with a high estimate of $440.00 and a low estimate of $260.00. The median estimate represents a 15.08% upside compared to the closing price of $304.14 on February 25th.
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.