Boeing Stock: Vietnam Deal Could Boost Struggling Shares

Boeing's stock continues to navigate turbulent market conditions, trading at $175.52 per share on Friday, marking a 1.0% gain in New York trading. This price point positions the aircraft manufacturer's shares well below their 52-week high of $206.60. The company's financial health remains concerning, with analysts generally rating the stock as overvalued at current levels despite its $130.91 billion market capitalization. In the most recent quarter, Boeing reported disappointing results with a loss of $5.46 per share, significantly worse than the previous year's loss of $0.04 per share. Meanwhile, revenue declined by 30.77% to $15.24 billion. The company is also experiencing management restructuring, with Stephanie F. Pope leaving her Chief Operating Officer role to lead Boeing Commercial Airplanes.

Vietnamese Contracts Offer Potential Uplift

Amid these challenges, potential business from Vietnam presents a possible silver lining for investors. The Vietnamese government is considering purchasing American aircraft to reduce its trade deficit with the United States and avoid potential tariffs. Vietnam Airlines already has contracts for 50 Boeing 737 Max planes valued at approximately $11 billion. Additionally, Vietnamese budget carrier VietJet signed an agreement in 2016 for 200 aircraft of the same model, though none have been delivered to date. These prospective deals could provide much-needed revenue streams for Boeing as it works through its financial difficulties. Analysts maintain some optimism, setting an average price target of $205.00 and projecting earnings of $3.90 per share by 2026.