Boeing is in red today after South Korea ordered a “comprehensive special inspection” of all B737-800s – the aircraft involved in the Jeju Air crash that killed 175 passengers over the weekend.
The deadly incident has once again raised significant concerns about aviation safety.
Still, Tony Zhang of OptionsPlay remains convinced that Boeing stock could pick up further in 2025. Shares of the aerospace giant have already rallied some 30% since mid-November.
Boeing stock has surpassed its 200-day MA
Zhang’s positive view on Boeing stock is primarily based on technicals.
He takes heart in the fact that shares of the multinational based out of Arlington Country, VA have broken above the 200-day MA that he dubbed “by far the most important” level to watch in a recent interview with CNBC.
BA has also cleared a key resistance around the $170 level that should help sustain the momentum heading into the next year, he added.
Despite ongoing challenges, the aerospace behemoth did manage to beat the revenue estimates in its latest reported quarter, indicating potential for a meaningful turnaround in 2025.
BA has achieved a few significant milestones
On “Power Lunch”, Tony Zhang was constructive on Boeing stock also because it “has gotten past some really interesting milestones.”
The planemaker was successful in navigating a significant labour dispute and signed a $10 billion credit agreement with a consortium of banks as well in October.
Additionally, the New York listed firm is improving deliveries every month that could help clear the way for its share price to recover further in 2025, as per the chief strategist of OptionsPlay.
Nonetheless, Zhang agreed that BA shares continue to be “fairly risky and very early in the recovery game”.
In other words, the company’s new management still has a lot to prove – and Boeing stock does not pay a dividend at writing to make waiting any easier for investors.
Should you invest in Boeing shares today?
On the flip side, the Jeju Air crash gives Wells Fargo analyst Matthew Akers to remain super bearish on Boeing stock.
The new funding does help minimise the risk of a downgrade in the near-term, but the management will have to pull all levers and fire on all cylinders over the next two years to keep the investment grade rating, he told clients in a recent note.
Akers $85 price target makes him one of the most bearish on BA shares among Wall Street analysts.
Note that Boeing ended its third financial quarter with a net loss of more than $6.0 billion that marked its largest since the pandemic in 2020 and Brian West – the company chief of finance expects that cash burn to continue over the next 12 months.
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