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

Core Insights - Boeing is facing significant challenges, with shares down nearly 7% year-to-date and an 11% drop in the past month, while Wall Street forecasts a $1.25 per-share loss for the first quarter [1][2] - The company announced a $10.55 billion all-cash deal to sell parts of its Digital Aviation Solutions business to Thoma Bravo, which includes key assets like Jeppesen and ForeFlight, expected to close by the end of 2025 [2][3] - This asset sale is part of Boeing's strategy to focus on core businesses, improve its balance sheet, and maintain an investment-grade credit rating [2][3] Financial Performance - Boeing's stock has been under pressure, with technical indicators showing a bearish trend despite a slight boost from the recent deal [4] - The average consensus price target for Boeing is $199.68, but recent analyst ratings suggest a target of $146.33, indicating a potential 8.6% downside from current levels [5] Market Sentiment - The recent asset sale is seen as a move to restore investor confidence amid ongoing production setbacks and cash flow issues [3][5] - Technical indicators such as the 20-day, 50-day, and 200-day simple moving averages are signaling negative momentum, with a MACD of negative 2.55 and a Relative Strength Index of 49.22 suggesting the stock is in a neutral position [4]