Boeing may have some new interest from high-profile investors at a time when it faces growing competition. The aerospace stock had a troubled year in 2024, but there are signs that the situation is improving. One of the most significant indications is the potential involvement of high-profile investors reportedly considering investing in the company.
This interest in Boeing dates back to last March and appears to remain strong. These unnamed activist investors are also considering investing in Boeing. The prospect of new, high-profile investors has spurred confidence, leading to a 2.5% gain in Boeing’s stock on Tuesday afternoon.
The potential influx of investment is critical for Boeing. With strict monitoring from the Federal Aviation Administration still in play and a significant backlog of orders, the company welcomes any new capital. Changes in administration and regulatory approaches could also impact the stringency of FAA oversight.
High-profile investors boost Boeing stock
Boeing is not only contending with internal issues but also facing growing international competition. China has been actively developing aircraft to compete with Boeing’s lineup.
Moreover, Brazil’s Embraer is making moves to capture a share of the market. Though Embraer’s aircraft tend to be smaller and their market cap smaller than Boeing’s, their planes are highly reliable, a selling point against Boeing’s modular aircraft. Signs suggest Embraer may be aiming to produce larger aircraft to compete directly with models like Boeing’s 737.
According to Wall Street analysts, Boeing is currently rated as a Moderate Buy. This consensus is based on 15 Buy ratings, five Hold ratings, and one Sell rating over the past three months. Boeing’s stock has gained 18.39% over the past year, with an average price target of $196.21 per share, implying an 11.77% upside potential.
Boeing continues to face challenges, but the interest from prominent investors could signify a turning point for the company. Keep an eye on Boeing as it navigates market pressures and seeks to regain its standing in the aerospace industry.
