Boeing shares slump to $198, 22% below year-to-date high amid China deal risk

  • China is making progress on its 200-jet Boeing commitment.
  • About 140 Boeing orders are in good state, while 10 more are being written down.
  • Boeing's May commitment was its first major Chinese deal in nearly a decade.

Boeing shares fell to $198 on Friday, their lowest level since March and 22% below the year-to-date high, as investors weighed operational and commercial challenges. Chief Executive Kelly Ortberg said delays affecting the 777X could push certification into next year, while a wing issue may slow the planned increase in 737 MAX production. Boeing is also dealing with losses and other difficulties following its acquisition of Spirit AeroSystems. Attention is turning to the upcoming meeting between President Donald Trump and Chinese President Xi Jinping, where aircraft purchases could be discussed. U.S. Trade Representative Jamieson Greer said China is making progress on its May commitment to buy 200 Boeing jets, including about 140 orders in a good state and 10 additional orders being written down. Greer gave no indication that further Chinese orders were near. The commitment marked Boeing's first major Chinese deal in nearly a decade, while Trump previously said China could potentially increase its Boeing order to as many as 750 planes. Earlier reports had raised concerns over engine parts, supply guarantees and post-sale maintenance. Additional potential and confirmed orders include talks with NASA for 10 more Starliner missions, a $112 million Saudi Arabia contract for F-15 training upgrades, 20 737 MAX aircraft for Lufthansa and 103 new jets ordered by Korean. Boeing's second-quarter revenue rose 8% to $24.5 billion, while first-half revenue increased 11% to $46 billion. Analysts expect annual revenue to rise about 10% to $98 billion this year and reach $112 billion next year, with earnings per share potentially turning positive at $4.09 next year. Benzinga data shows most analysts have bullish ratings, with an average price target of $274 versus the current $198.

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