Boeing shares hit a fresh all-time high on Thursday, company inks deal for 42 777X jets with IAG

Boeing Co (BA) said on Thursday that it had signed a deal with International Airlines Group, the parent company of British Airways, involving the purchase of up to 42 777X aircraft by the carrier.

Evaluated at up to $18.6 billion at list prices, the deal will be presented on Boeing Cos Orders and Deliveries website after it is complete, the US plane maker said.

Boeing shares closed higher for a second consecutive trading session in New York on Thursday. The stock went up 1.04% ($4.52) to $439.96, after touching an intraday high at $441.51 and also a fresh all-time high.

Shares of Boeing Company have surged 36.42% so far in 2019 compared with an 11.08% 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.

British Airways becomes another leading carrier, which has chosen the 777-9 jet, whose debut is expected in March.

The 777-9 jet is larger and has a slightly wider cabin compared to current representatives of the 777 family, while being capable of carrying 400 to 425 passengers. Another advantage of the new jet includes the 12% lower fuel consumption compared to competing aircraft.

The 777-9 has a standard range of 7 600 nautical miles (or 14 075 kilometers), which makes it superior compared to its predecessors.

“The new 777-9 is the worlds most fuel efficient longhaul aircraft and will bring many benefits to British Airways fleet. Its the ideal replacement for the 747 and its size and range will be an excellent fit for the airlines existing network,” Willie Walsh, IAGs Chief Executive Officer, said in a statement.

“This aircraft will provide further cost efficiencies and environmental benefits with fuel cost per seat improvements of 30 per cent compared to the 747. It also provides an enhanced passenger experience.”

By placing an order for the 777-9 jet, British Airways continues a long-running relationship with the 777 family. Currently, the carrier is among the largest 777 operators worldwide, as it has a fleet of 60 of the long-range aircraft. In 2018, British Airways ordered 4 more 777-300 Extended Range jets through operating lease.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $458.00, with a high estimate of $525.00 and a low estimate of $380.00. The median estimate represents a 4.10% upside compared to the closing price of $439.96 on February 28th.

The same media also reported that 17 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 3 – 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 – $421.02
R1 – $427.50
R2 – $430.95
R3 – $437.43
R4 – $443.91

S1 – $417.57
S2 – $411.09
S3 – $407.64
S4 – $404.19