While aerospace stock Boeing’s (BA) space ambitions have not exactly gone well in the past—the less said about the Starliner debacle the better, at least for now—there are some signs it might be able to get some credibility back. In fact, Boeing recently saw the launch of the X-37B space plane for the Space Force. Investors were modestly pleased, and gave Boeing shares a fractional gain in Thursday afternoon’s trading.
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The X-37B, also known as the orbital test vehicle, recently launched from the Kennedy Space Center, the eighth such mission so far. The plane is likely to end up as one platform for the Space Force’s lineup of “counterspace weapons,” which suggests it could be used in everything from satellite protection to missile defense.
Once aloft, noted a statement from the Space Force, the plane will “…conduct a variety of tests and experiments during its mission.” Among the items set to be tested are “…laser communications and the highest-performing quantum inertial sensor ever tested in space.” If this works, and works out reasonably well, it will likely go a long way toward fixing Boeing’s past missteps in space.
Ramping Up the MAX Deliveries
Meanwhile, we also heard recently about how Boeing may have a path back to getting its production cap taken off with the Federal Aviation Administration planning “tabletop exercises” to vet Boeing’s ability to take on key conditions. And Boeing seems to believe it’s ready for this, as evidenced by recent fast-tracking of 737 Max deliveries.
Reports suggest that Boeing is planning for “…a production ramp-up” by late October, and is gearing up accordingly. With the “tabletop exercises” set to be in place and running by late September, that could be a rational timeline. It assumes that the FAA signs off, of course, but with a plan in place, all that may be left is the execution of said plan.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 18 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 36.78% rally in its share price over the past year, the average BA price target of $258.17 per share implies 9.49% upside potential.
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