Boeing shares fall for a second straight session on Thursday, plane maker revises up 20-year forecast for aircraft demand in China

Boeing Co (BA) on Thursday revised up its 20-year forecast for China’s aircraft demand, even as the pandemic may obstruct global jet deliveries over the upcoming several years.

Boeing shares closed lower for a second consecutive trading session in New York on Thursday. The stock went down 2.98% ($5.43) to $176.72, after touching an intraday low at $176.25, or a price level not seen since November 9th ($172.25).

Shares of Boeing Company have retreated 45.75% so far in 2020 compared with a 9.48% 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.

According to Boeing, Chinese air carriers will require 8,600 new aircraft through 2039, valued at a total of $1.4 trillion at list prices. That compares with 8,090 aircraft the company projected in 2019.

Last month the US plane maker revised down its 20-year forecast for global aircraft demand because of the accelerating coronavirus pandemic.

“While COVID-19 has severely impacted every passenger market worldwide, China’s fundamental growth drivers remain resilient and robust,” Richard Wynne, managing director, China Marketing, Boeing Commercial Airplanes, said.

“Not only has China’s recovery from COVID-19 outpaced the rest of the world, but also continued government investments toward improving and expanding its transportation infrastructure, large regional traffic flows, and a flourishing domestic market mean this region of the world will thrive.”

Analyst stock price forecast and recommendation

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $174.00, with a high estimate of $260.00 and a low estimate of $125.00. The median estimate represents a 1.54% downside compared to the closing price of $176.72 on November 12th.

The same media also reported that at least 15 out of 28 surveyed investment analysts had rated Boeing Company’s stock as “Hold”, while 10 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

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