BOEING (#BOEING) Weekly Special Report based On 1.00 Lot Calculation:
AEROSPACE & DEFENSE MARKET INDUSTRY
- GLOBAL AEROSPACE AND DEFENSE MARKET SIZE: According to Price Waterhouse Cooper (PwC), the Aerospace and Defense industry is currently worth around $740.5b as of the end of 2022, growing from $717.98B in 2021.
- THE MARKET: GROWTH IN AEROSPACE AND DEFENSE EXPECTED TO CONTINUE: According to analysts, the market is forecasted to grow to $961.21B by 2026, representing a compounded annual growth rate of 5.3%.
BOEING:
- THE COMPANY: The Boeing Co. is an aerospace company, which engages in the manufacture of commercial jetliners and defense, space, and security systems. The company is one of two manufacturers of 100+ seat airplanes, with Airbus being the other.
- MARKET SHARE: Boeing is the 2nd largest company in the sector with ~9% of the market share. The biggest aerospace & Defense company is Raytheon Technologies (9.06%), followed by Boeing (9.00%) and Lockheed Martin (8.91%) respectively.
EVENTS AND ANALYSIS
- EVENT: MIDDLE EAST TENSIONS ESCALATE, AS ISRAEL EXPANDS GROUND OFFENSIVE WHILE THE UNITED STATES STEPS UP MILITARY AID: With the ongoing war in the Middle East, Israel is seeing a surge in requirements for its defense. Boeing is a key producer of aircraft that Israel uses, such as the F-15 and the KC-46A aircraft. Given the escalation and demand for aircraft, Boeing could be awarded more defense contracts, which could improve the company’s revenue significantly.
- EUROPEAN DEFENSE SPENDING SURGES, AS EUROPEAN DEFENSE OUTLAYS RISE FROM 20% IN 2016 TO 33% IN 2023: European defense spending is continuing to rise, spiking to 33% of total outlays for military purposes. Boeing will be seeking to expand its presence in the European markets, especially with NATO expansion all but certain.
- STOCK PRICE ACTION: THE STOCK HAS HAD A DOWNWARD CORRECTION OF AROUND 75% FROM IT'S ALL TIME HIGH OF $445.61. The stock has fallen to its lowest rate since May, 2020, to $111.84. Boeing was last trading around $185.00, and If a full recovery follows recent all- time highs, the stock could see an upside of around ~141%. However, the price could decline further.
- ANALYST OPINION: Goldman Sachs target is at $258 on the stock. Citi Group at $271, while Jefferies is at $275 a share. AVERAGE BLOOMBERG ANALYSTS’ CONSENSUS is 238.38 a share.
Boeing, November 1, 2023
Current Price:185.00
|
Boeing |
Weekly |
|
Trend direction |
|
|
300.00 |
|
|
260.00 |
|
|
205.00 |
|
|
170.00 |
|
|
160.00 |
|
|
150.00 |
|
Boeing |
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|
Pivot Points |
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|
Profit or loss in $ |
115,000.00 |
75,000.00 |
20,000.00 |
-15,000.00 |
-25,000.00 |
-35,000.00 |
|
Profit or loss in €2 |
108,924.21 |
71,037.53 |
18,943.34 |
-14,207.51 |
-23,679.18 |
-33,150.85 |
|
Profit or loss in £2 |
94,656.44 |
61,732.46 |
16,461.99 |
-12,346.49 |
-20,577.49 |
-28,808.48 |
|
Profit or loss in C$2 |
159,662.55 |
104,127.75 |
27,767.40 |
-20,825.55 |
-34,709.25 |
-48,592.95 |
1 1.00 lot is equivalent of 1000 units
2 Calculations for exchange rate used as of 08:45 (GMT) 1/11/2023
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