Boeing (BA) moved higher Monday following weekend reports that suggest the planemaker is close to agreeing a massive aircraft deal with Air India and analysts at JPMorgan boosted their price target.
Reuters reported Sunday that Air India, the Asia-region's biggest carrier outside of China, is preparing to place an order for around 500 planes from both Boeing and its European rival Airbus.
The purchase, which could include both narrow and wide-body jets, could be worth tens of billions of dollars at current list prices. India's Economic Times reported the deal could include 50 737 Max jets, with an option for a further 150 of the redesigned aircraft.
Boeing is also likely to confirm a major 787 Dreamliner order with United Airlines (UAL), with the carrier scheduling what it said would be an 'historic announcement' on Tuesday at the planemaker's South Carolina manufacturing base.
The Wall Street Journal reported last week that United could confirm the purchase as early as this month, noting the multi-billion dollar deal would mark a major win for Boeing over its European rival Airbus just as it resumes deliveries of the flagship aircraft following a host of regulatory and production issues.
The Federal Aviation Administration gave Boeing the go-ahead in August to resume 787 Deliveries after halting them in May of 2021 over concerns linked to safety inspections.
Boeing shares were marked 1.4% higher in early Monday trading to change hands at $182.08 each, a move that would trim the stock's year-to-date decline to around 10%. JPMorgan analysts also boosted their price target on the group by $30, to $200 per share, in a note published Monday.
Boeing booked orders for 10 of its 787-9 Dreamliner variant aircraft in October, the planemaker said last month, with overall bookings for all of its aircraft pegged at 122. October deliveries fell to 35 aircraft from the 51 reported in September.
Boeing posted an adjusted loss of $6.18 per share over the three months ending in October, a wider-than-expected tally that included a $2.8-billion charged linked to its Pentagon defense contracts.
Free cash flow, however, came in firmly ahead of Street forecasts at $2.9 billion, with the group holding to its full year forecast of positive free cash flow powered by stronger commercial deliveries.
