‘This Could Be a Big Catalyst,’ Says Jefferies About Boeing Stock (BA)

Boeing BA +4.08% ▲ could see a major boost from a potential aircraft deal with China, according to top Jefferies analyst Sheila Kahyaoglu, who reiterated a Buy rating on the stock with a $295 price target. The analyst pointed to reports that Boeing may be close to securing a large aircraft order from Chinese airlines, which she said could act as a major catalyst for the stock.

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It is worth noting that Kahyaoglu ranks 334 out of more than 12,000 analysts tracked by TipRanks. She has a success rate of 63%, with an average return per rating of 13.90% over a one-year timeframe.

A Large Aircraft Deal Could Lift Boeing’s Order Book

A recent Bloomberg report said China is in talks to buy up to 500 Boeing 737 MAX aircraft. The potential deal could be announced during U.S. President Donald Trump’s planned visit to China later this month, where trade discussions with Chinese President Xi Jinping are expected to take place.

If completed, the deal would mark the first major Boeing order from Chinese airlines since 2017, ending a long pause in purchases from one of Boeing’s largest international markets.

The report also said China and Boeing are discussing a widebody aircraft order that could include about 100 Boeing 787 Dreamliners and 777X jets. However, that part of the deal may be announced later and is not expected to be part of the upcoming visit.

For Boeing, the potential agreement could be important because China is one of the world’s fastest-growing aviation markets, with airlines expected to add thousands of new aircraft over the next two decades as travel demand increases. While details are still being negotiated and the deal is not finalized, Jefferies believes such an order could strengthen Boeing’s backlog and support investor sentiment around the stock.

Is Boeing a Good Stock to Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 13 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 49.9% rally in its share price over the past year, the average BA price target of $278.17 per share implies 20.36% upside potential.

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