Boeing has a red background today, after South Korea demanded a “comprehensive inspection special” on all B737-880s. These were the planes involved in the Jeju Air crash which killed 175 people over the weekend.
This tragic incident has raised concerns over aviation safety.
Tony Zhang, of OptionsPlay, is still convinced that Boeing’s stock will continue to rise in value by 2025. The aerospace giant’s shares have already risen by 30% since November.
Boeing stocks has exceeded its 200-day MA
Zhang’s optimistic view of Boeing is mostly based on the technicals.
In a recent CNBC interview, he said that the shares of this multinational company based in Arlington Country have risen above the 200 day MA level that was “by far” the most critical.
He added that BA had also overcome a major resistance level around $170, which should continue the momentum into next year.
The aerospace giant, which has been facing ongoing problems, managed to surpass revenue expectations in the latest quarter reported, showing the potential of a significant turnaround by 2025.
BA has reached a number of significant milestones
Tony Zhang, on “Power Lunch”, was positive about Boeing Stock because “it has gotten through some really exciting milestones.”
In October, the planemaker successfully navigated a major labour dispute. It also signed a credit agreement worth $10 billion with a group of banks.
According to the OptionsPlay chief strategist, New York-listed firm’s monthly improvements could allow its stock price to rise further by 2025.
Zhang acknowledged that BA’s shares are “fairly volatile and still very early on in the recovery process”.
Boeing’s stock doesn’t pay out a dividend to ease the wait for shareholders.
Do you need to invest in Boeing today?
Matthew Akers, a Wells Fargo analyst, is still very bearish about Boeing stocks in the wake of the Jeju Air accident.
In a note to clients, the author said that the new funding helps to minimise the risks of a rating downgrade. However, the company will need to fire at full throttle over the next 2 years in order to maintain the investment-grade rating.
Analysts on Wall Street are divided over Akers’ $85 target price for BA.
Boeing’s third quarter financial loss was more than $6 billion, the largest ever since 2020. Brian West – the chief finance officer of the company – expects this cash burning to continue for the next year.
The post Jeju Air crash and Boeing stocks in 2025 could be updated as new information becomes available
This site is for entertainment only. Click here to read more
