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Boeing shares close higher on Tuesday, 14 737 MAX planes ordered by SMBC Aviation Capital

SMBC Aviation Capital said on Tuesday that it had ordered 14 additional 737-8 jets from Boeing Co (BA), which would expand its 737 MAX portfolio to 121 planes. The new order comes at a time when air carriers prepare for a robust rebound in global air travel and modernize their narrowbody fleets.

“We are pleased to have concluded an agreement with Boeing for the purchase of 14 low-cost carrier configured 737 MAX aircraft which is an aircraft we are seeing increased customer demand for following its successful return to service,” Peter Barrett, Chief Executive Officer of SMBC Aviation Capital, said in a press release.

Boeing Co delivered 13 737-8 aircraft to customers during the first quarter of 2021, including 11 planes to Southwest Airlines and 2 planes to TUI in Europe. The plane maker’s total number of gross orders and commitments for the 737 MAX for 2021 is now over 250 aircraft.

“SMBC has been actively managing its portfolio in a very dynamic market. With this new order for the fuel-efficient 737-8, the lessor is well positioned to help its customers capture domestic travel demand in several countries and regions,” Ihssane Mounir, Boeing Co’s senior vice president of Commercial Sales and Marketing, said.

“We are honored by SMBC’s trust in the 737 family, and we look forward to partnering with them to support airlines for the market recovery ahead.”

Boeing shares closed higher for a fourth consecutive trading session in New York on Tuesday. The stock went up 1.39% ($3.30) to $240.74, after touching an intraday high at $243.78. The latter has been a price level not seen since April 26th ($244.60).

Shares of Boeing Company have risen 12.46% so far in 2021 compared with an 11.50% gain for the benchmark index, S&P 500 (SPX).

In 2020, Boeing’s stock went down 34.29%, thus, it underperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to CNN Money, at least 13 out of 28 surveyed investment analysts had rated Boeing Co’s stock as “Buy”, while 10 – as “Hold”. The median price target on the stock stands at $267.50. 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.

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