According to FlightGlobal, Boeing (NYSE: BA) is going to "surge" (a very popular word nowadays) 787 production early in order to meet customer demand. The surge is part of the establishment of the Charleston 787 line. Boeing will use "transitional surge capability" until the second 787 line is on line; this capability will take place at Boeing's current Washington line. As far as the new South Carolina plant, the facility will support the testing and the delivery of the airplanes.
In addition to this news, Boeing received an upgrade from Macquarie Research, as the airliner was elevated to "outperform" from "neutral." Valuation was the main reason for the upgrade, as the brokerage feels that the current pullback may afford a good buying opportunity.
Technically, the pullback may put the shares at an attractive entry price, but I am a tad concerned about the equity's 20-month moving average looming overhead. This trendline has turned the shares away before, and it appears ready to do the same again. With this moving average dropping through the upper $53 region, this gap between the current stock position and the trendline leaves the stock some room to run, but not a lot.
Will air carriers need more airplanes? The Dreamliner 787 is popular and is garnering a lot of attention, let's see if this momentum can help Boeing topple the technical resistance it faces.
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Reader Comments (Page 1 of 1)
10-29-2009 @ 11:42AM
rockjcp said...
Demand for replacement aircraft is huge. Once first flight is successful watch airlines scramble to get in line. Fuel efficiency has had this plane in demand for some time.