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Boeing Co (BA): Iran Could Send Stock Soaring To New Heights

Boeing Co. NYSE:BA

It appears as though Boeing Co  is likely to derive a massive surge from its Iranian counterpart. Sources report that the aircraft giant is currently working out the details of a deal with Iran Air. After nearly 30 years of sanctions, dealing with the Middle Eastern nation is now viewed under a more relaxed eye. However, Boeing may find itself unable to work with Iran Air if it waits too long. Come year-end, a new administration will be seated in Washington, one that could have a different opinion on Iran’s highly contested and recently lifted sanctions. The end of April saw Boeing deliver 230 airplanes during that month. The company got nearly 270 new orders in the following. The aircraft maker appears to be recovering nicely from its decline in February. This, in addition to the Iran Air contract, means the firm will soon prove itself to be great investment. As it stands, in terms of demand, Boeing is doing better than Airbus, its largest competitor across the water.

Boeing Co. NYSE:BA

Analysts insist that investors seeking to place their eggs in Boeing’s baskets should not hesitate on the company’s stock. Set to make history, the air company will soon be signing a deal with Iran Air. If precedent is anything to go by, the agreement could see Boeing rake in several billions from the Middle Eastern airline. After 3 decades of limitations, Iran Air is eager to expand and spread its wings.

The last time Iran Air made a deal of this kind, it was with Airbus. That was in November last year and had the European air expert make 25 billion for over 100 planes. The settlement also had Airbus stock value soar to new heights. Now the Middle East airliner has the chance to to work with Boeing, one of the U.S.’s best manufacturers and exporters.

The mere mention of a rumor with Iran Air resulted in a mild spike in Boeing’s at the start of this week. The actual signing of a deal could do wonders to the company’s shares, just as it did to Airbus. Boeing Co  says that Iran Air needs around 300 airplanes to match its expansion needs.

There are many more airlines in the country that will need Boeing’s aid. Thirty years of U.S. imposed sanctions meant that a lot of international companies could not sell airplane components and their related services to Iran. For this reason, many airlines have had a lot of their planes stationed in hangers, unable to perform maintenance and upgrades on them. That could change once Boeing breaks into Iran again.

Time could be running out for Boeing/Iran Air deal

The U.S. gave Boeing permission to work with Iranian airlines back in February. However, additional limitations need to be put aside before the aircraft giant can effectively make exports to the Middle Eastern country.

However, in Washington the lifting of sanctions against Iran has been highly contested. Further, the most likely candidates to lead America by the end of the year could sing a different tune and side with enhancing sanctions once again. This puts a time window on the deal which could have no way of being signed by after November.

As it stands, Boeing’s stock is worth just over $132. Building ties with Iran Air promises to open new revenue streams for the company in addition to sending its stock soaring.

Shares of Boeing Co  were up 0.70% as of 2:56PM EDT.

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