Boeing shares touch a fresh all-time high on Tuesday, plane maker announces “significant investment” in Aerion

February 6, 2019 11:10 am

Boeing Co (BA) announced on Tuesday a “significant investment” in Aerion, a supersonic business jet developer, amid rising demand for high-end aircraft. Financial details of the agreement, however, were not disclosed.

Boeing shares closed higher for a third consecutive trading session in New York on Tuesday. It has also been the sharpest daily surge since January 30th. The stock went up 3.32% ($13.18) to $410.18, after touching an intraday high at $410.69 and also a fresh all-time high.

Shares of Boeing Company have surged 27.19% so far in 2019 compared with a 9.21% gain for the benchmark index, S&P 500 (SPX).

In 2018, Boeing’s stock went up 9.36%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

Boeing Co is to provide engineering, manufacturing and flight testing services for Aerion’s AS2 supersonic business jet, whose first flight is scheduled for 2023.

The $120 million jet is capable of achieving speeds of up to Mach 1.4, or almost 1 000 Miles per Hour (1 609.34 Kilometers per Hour), or considerably faster compared to conventional business aircraft.

In 2017, Lockheed Martin Corp said it had tied up with Aerion to develop the AS2 jet, but however, collaboration between the two companies seemed to have ended.

Yesterday a spokesperson for Lockheed Martin said for Reuters that the company’s “contract with Aerion to vet the technical viability of the AS2 design expired Friday, February 1, and there are no plans to renew.”

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $430.00, with a high estimate of $500.00 and a low estimate of $330.00. The median estimate represents a 4.83% upside compared to the closing price of $410.18 on February 5th.

The same media also reported that 18 out of 24 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 4 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:

Central Pivot Point – $379.24
R1 – $400.99
R2 – $414.54
R3 – $436.29
R4 – $458.03

S1 – $365.69
S2 – $343.94
S3 – $330.39
S4 – $316.83

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