Boeing Preps For A Rough Q1 Takeoff - But $10.55 Billion Cash Deal Could Provide A Soft Landing

Boeing Co. BA is flying into earnings Wednesday morning before market hours, with turbulence already rocking the fuselage. Shares are down nearly 7% year to date, with a brutal 11% drop in the past month alone. Wall Street’s forecast for a $1.25 per-share loss in the first quarter isn't offering much hope.

But a sudden tailwind Tuesday could help level out some of the descent.

The stock got a boost after Boeing announced a $10.55 billion all-cash deal to sell chunks of its Digital Aviation Solutions biz to private equity firm Thoma Bravo. The package includes notable assets like Jeppesen and ForeFlight, with the transaction expected to close by the end of 2025.

"This transaction is an important component of our strategy to focus on core businesses, supplement the balance sheet and prioritize the investment grade credit rating," said Boeing CEO Kelly Ortberg.

The move comes just in time. Boeing has been dealing with a high-altitude identity crisis – bleeding cash, battered by production setbacks, and now leaning on asset sales to restore investor confidence. The sale won't fix its fuselage flaws overnight, but it's a clear signal the company is trying to tighten up its cockpit.

Read Also: Boeing Secures New Stocks Of Crucial Nuts And Bolts Used In 737 Max Production Amid China’s Import Ban: Report

Tech Check: Boeing Stock Charts Are Still Cloudy

Chart created using Benzinga Pro

Despite Tuesday's deal bump, Boeing's technicals remain more bearish than bullish. While there's some buying pressure and the eight-day simple moving average (SMA) of $158.13 gives a bullish nudge, that's where the optimism ends. The 20-day, 50-day and 200-day SMAs all flash red. And with a MACD (moving average convergence/divergence) of negative 2.55, momentum is heading in the wrong direction. The Relative Strength Index at 49.22 suggests Boeing stock is stuck in neutral.

Wall Street's Radar: A Turbulent Target

While the average consensus price target sits at $199.68, a more recent trio of analyst ratings from Benchmark and Wells Fargo puts the stock at $146.33 – implying a potential 8.6% downside from current levels.

Earnings will be the ultimate pilot here. Will the $10.55 billion cash parachute help Boeing steer out of the tailspin?

Investors, buckle up Wednesday morning to find out.

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