Company Update (NYSE:GE): General Electric Company Capital Aviation Services and Boeing Co Announce $8.25 Billion Order for 75 737 MAX Aircrafts


General Electric Company (NYSE:GE) Capital Aviation Services (GECAS) and Boeing Co (NYSE:BA) announced an order for 75 737 MAX 8 aircraft. The order, booked in December, has an approximate value of $8.25 billion at list prices. The follow-on order increases the GECAS firm order book for the 737 MAX to 170 airplanes, the largest of any aircraft leasing company.

“These new orders will enable GECAS to serve our clients’ needs — assisting in managing their fleets, transitioning aircraft and providing new equipment,” said Alec Burger, President and Chief Executive Officer of GECAS. “Our customers want the latest technology and fuel efficiency, and the CFM International LEAP-1B engines on these aircraft deliver outstanding productivity and reliability in the single-aisle market.”

“When it comes to demand, this order shows the MAX 8 remains at the heart of the single-aisle market,” said Brad McMullen, vice president of North America and Leasing Sales, Boeing Commercial Airplanes. “We appreciate the confidence GECAS has in the 737 MAX, and look forward to seeing the airplanes placed with carriers all over the world.”

To date, customers have ordered 3,419 MAXs, making it the fastest-selling airplane in Boeing’s history. (Original Source)

Shares of General Electric are currently trading at $158.53, up $1.56 or +0.99%. GE has a 1-year high of $33 and a 1-year low of $27.10. The stock’s 50-day moving average is $31.44 and its 200-day moving average is $30.72.

On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on December 20, RBC analyst Deane Dray reiterated a Buy rating on GE, with a price target of $37, which implies an upside of 17% from current levels. Separately, on December 19, Oppenheimer’s Christopher Glynn reiterated a Hold rating on the stock.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Deane Dray and Christopher Glynn have a yearly average return of 1.6% and 15.3% respectively. Dray has a success rate of 53% and is ranked #1299 out of 4351 analysts, while Glynn has a success rate of 75% and is ranked #17.

Sentiment on the street is mostly bullish on GE stock. Out of 11 analysts who cover the stock, 8 suggest a Buy rating , 2 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $36.00, which implies an upside of 13% from current levels.