Boeing Co (BA) said earlier this week it had halted titanium purchases from Russia.
“Boeing has a significant stock of titanium, in particular thanks to Boeing’s initiative for the creation of a pool of suppliers around the world that has been underway for several years. Boeing has currently suspended titanium purchases from Russia. Titanium stocks and a network of alternative suppliers allow Boeing to maintain uninterrupted production of civil aircraft. The company will continue to take steps to ensure the sustainability of the business in the long term,” the US plane maker said in a statement.
Titanium components are used in the production of Boeing’s 737, 767, 787, 777 and 777X civil aircraft.
The plane manufacturer receives nearly one third of the required amount of titanium for aircraft components from Russia.
Boeing shares closed higher for the fifth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest single-session gain since February 15th. The stock went up 2.74% ($4.63) to $173.80, after touching an intraday low at $167.58. The latter has been a price level not seen since November 6th 2020 ($154.52).
Shares of Boeing Company have retreated 13.67% so far in 2022 compared with a 12.50% loss for the benchmark index, S&P 500 (SPX).
In 2021, Boeing Co’s stock went down 5.95%, thus, it again underperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 12 out of 17 surveyed investment analysts had rated Boeing Co’s stock as “Buy”, while 5 – as “Hold”. The median price target on the stock stands at $258.75.
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