An investigation into Boeing Co’s (BA) bid to acquire the commercial aviation unit of Brazilian plane maker Embraer has been resumed by the European Commission, a filing revealed earlier this week.
A decision is expected by August 7th. The regulator put the investigation on hold on February 24th, as it expected the information it had requested from both companies.
Boeing shares closed lower for a third consecutive trading session in New York on Wednesday. The stock went down 1.00% ($1.36) to $134.97, after touching an intraday low at $134.74, or a price level not seen since April 16th ($134.03).
Shares of Boeing Company have retreated 58.57% so far in 2020 compared with a 13.35% 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.
Last October the antitrust regulator raised concerns over the deal, noting that it might lead to the removal of Embraer as the third biggest global player in the commercial aircraft industry, and more particularly in the single-aisle segment.
The commercial aviation division of Embraer manufactures 70- to 150-seat jets and competes with Airbus’ A220 programme.
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 $162.50, with a high estimate of $440.00 and a low estimate of $95.00. The median estimate represents a 20.40% upside compared to the closing price of $134.97 on April 22nd.
The same media also reported that at least 14 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Hold”, while 8 – as “Buy”.