Long Term Analysis of Boeing Stock

The stocks of Boeing (BA) have shown unexpected results recently, as they are increasing and decreasing indefinitely, and on a regular basis. For those who do not know, Boeing is a company, settled in Chicago, which manufactures and designs aircraft and military defense systems, including jet planes, dreamliners, satellites, military aircraft, missiles, and space flight systems.

Boeing is doing good business recently. However, it has faced numerous problems that have reduced its profits. Some of these problems include worker union issues, fuel prices, economic depression, and delay in the manufacture of its revolutionary product: the BA 787 dreamliner.

The BA 787 Dreamliner is a mid-sized, lightweight jet that is believed to be the world’s most fuel efficient, long-range aircraft. It consumes 20% less fuel than other jets. Boeing is expected to get many orders of its BA 787 Dreamliner over the next few months. The first BA 787 Dreamliner was sold by Boeing to Air Nippon Airways, Tokyo, Japan. The production of the first BA 787 Dreamliner was delayed numerous times, until it was finally produced, eight years after its original production date. In the next few days, Boeing is going to deliver a BA 787 Dreamliner to United Continental airways, which will the first American air carrier to buy the BA 787 Dreamliner and use it for commercial flights. Furthermore, Boeing is expected to deliver seven more BA 787 dreamliners to Air Nippon Airways by the end of this year, and another eight 787 dreamliners at the end of the next year. In order to meet these demands, Boeing needs to manufacture ten BA 787 dreamliners each month for atleast the next two years. This will seem to be a tough challenge, especially because the first BA 787 Dreamliner took eight years to be produced. However, Boeing is determined to achieve this target.

According to market analysts, if Boeing meets its target, then its shares are expected to reach $85 by the end of the year. If this happens, then Boeing will attract more investors, and will increase by a further $6 by the end of 2013, says Jefferies and Co. According to USA Today, if Boeing meets its targets constantly, then it is sure to give the investors a good return. However, if it doesn’t, then it could mean a huge short term risk for investors. Even though it is a big risk, it might be worth taking, as the returns will be very good if Boeing share prices increase.