Boeing Stock: New Orders Amid Safety Concerns

Boeing faces a paradoxical situation as it secures significant new orders while still addressing safety concerns following last month's deadly Air India crash that claimed 260 lives. The company's stock reached a 52-week high of $233.18 this week, fueled by a spectacular deal with Indonesia for 50 Boeing jets, primarily 777 models, as part of a $15 billion agreement. This positive momentum comes despite ongoing investigations into the crash, which preliminary findings suggest may have involved fuel switch malfunctions. Gulf Air from Bahrain is considering purchasing up to 20 Boeing 787 Dreamliners—the same aircraft model involved in the disaster—further highlighting the market's confidence in the manufacturer despite safety questions.

Market Performance Remains Strong

Despite safety concerns, Boeing's stock has demonstrated remarkable strength, gaining 28.7% over the past twelve months and an impressive 38.7% in the last six months. The company's market capitalization has climbed to $175 billion. Meanwhile, airlines worldwide, including Singapore Airlines, Korean Air Lines, and Qantas, have been conducting inspections of fuel switches on Boeing aircraft following revelations that the Air India crash may have involved fuel switches simultaneously moving from "Run" to "Cutoff" positions shortly after takeoff. Analyst targets for Boeing stock remain divided, with price objectives ranging from $150 to $285, reflecting the tension between growth opportunities from new markets and ongoing safety considerations.

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Source StockWorld