• Lallic Partners

Is Boeing a Buy?

Koki Mashita | Updated April 20th 2020 | Editor: Nichola Monroe


Boeing (BA) has been devastated by the coronavirus recently. However, it seems that Boeing may start to recover and go back to a healthy market cap when the virus starts to slow down. Although there have been many troubles prior to the coronavirus, such as the grounding of it’s 737 MAX jets due to the deadly crashes in Indonesia and Ethiopia, the company will be back on its feet.



When taking a look at its current price, their resistance, and its support, the current price of $148.9 (as of Monday April 20th) is a great discount. From our perspective, we are looking at Boeing for a long-term investment but it can be traded as short term due to the increase in volatility from higher volume. In regards to the recommendation ratings from Phillip in the Poems trading service, it is still rated as a hold, but when comparing current ratings to one month ago, there has been an increase in the buy recommendation.


Company Analysis

The company itself has been significantly attacked by the coronavirus. Production and orders have stopped completely for commercial planes. However, Boeing announced on Friday the 16th that they will restart operations at Philadelphia area plants next week. In Philadelphia, Boeing manufactures military rotorcrafts. This may not sound significant but Boeing’s defense industry contributed 1/3rd of 2019 revenue. The announcement caused an uptick of 14.72% on Friday. Boeing also said that they will resume manufacturing commercial jets the same week in Washington state.


Long Term Safety

For Boeing, it is also a great investment because it is almost a money back guarantee. We may just have to wait a while. Boeing is such an important corporation that the US cannot afford Boeing to go bankrupt. The government already has been supporting Boeing with aid to fight the coronavirus and they will continue to do so. For Boeing, we can relax and pour money into it. The only downside is that we may just have to be patient.


Written For Lallic Partners

Image Citation:

https://www.businessinsider.com/boeing-production-cuts-coronavirus-737-max-crisis-research-note-2020-4

Citations:

https://finance.yahoo.com/news/boeing-restart-operations-philadelphia-area-195410475.html?.tsrc=applewf

https://www.fool.com/investing/2020/04/18/better-buy-boeing-vs-airbus.aspx



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