- Boeing stock falls as Russian raw material supplies are likely to be in short supply.
- Boeing earlier said it was suspending buying Russian titanium.
- BA stocks fell over 6% on Monday as main indices fell over 3%.
Boeing (BA) stock slipped on Monday, even disproportionally versus the main market. While the S&P 500 and the Nasdaq fell in the region of 3% to 4%, Boeing underperformed as it fell just under 6.5%.
Boeing Stock News
Monday's move took Boeing stock to new 52-week lows as the stock remains pressured in the current risk-off environment. The Wall Street Journal reported on Monday that Boeing had suspended purchases of titanium from Russia as the company felt it had enough supply from other sources.
“Our inventory and diversity of titanium sources provide sufficient supply for airplane production, and we will continue to take the right steps to ensure long-term continuity,” a Boeing spokeswoman told WSJ.
Also on Monday Cowen & Co. lowered their price target for Boeing from $265 to $230. Cowen maintained their outperform rating on Boeing. Breaking Defense had last week reported that Air Force One's replacement was running up to 17 months late, according to two sources. Boeing is the supplier of Air Force One.
Boeing will also likely feel headwinds from the current surge in oil prices. While not directly affected, higher oil prices will flow through to higher airfares and a likely reduction in passenger demand. This would see a knock-on but delayed demand for additional planes affecting Boeing and its main competitor, Airbus. However, Boeing does have a large military division. At the end of 2021 the Boeing Defence, Space & Security division accounted for over 33% of total Boeing revenues. The US Department of Defense is the top customer of this division.
Boeing Stock Forecast
Breaking the 52-week low is significant, and from the weekly chart below we can see how Boeing failed to regain its pre-pandemic levels. This should have been setting off alarm bells as stocks and indices reached all-time highs. The aerospace sector was a special case, but technically this was a bearish signal.
BA stock chart, weekly
The daily chart outlines the series of bearish lower lows and highs. Any rally to $185 can be used to instigate fresh bearish positions.
BA stock chart, daily