Boeing (BA, Financial) has announced a definitive agreement to sell significant segments of its Digital Aviation Solutions division, including Jeppesen, ForeFlight, AerData, and OzRunways, to Thoma Bravo. The all-cash transaction is valued at $10.55 billion. Despite the sale, Boeing will maintain essential digital capabilities crucial for providing maintenance, diagnostics, and repair services to its commercial and defense clients, utilizing aircraft and fleet-specific data.
This strategic move is intended to streamline Boeing's focus on its core businesses, bolster its financial health, and prioritize its investment-grade credit rating, according to Boeing President and CEO, Kelly Ortberg. Approximately 3,900 employees are currently part of Boeing's Digital Aviation Solutions division, and the company is collaborating with Thoma Bravo to ensure a smooth transition for these employees while fulfilling customer commitments.
The transaction is expected to be finalized by the end of 2025, pending regulatory approvals and standard closing conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Boeing Co (BA, Financial) is $194.88 with a high estimate of $233.00 and a low estimate of $111.00. The average target implies an upside of 22.31% from the current price of $159.34. More detailed estimate data can be found on the Boeing Co (BA) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Boeing Co's (BA, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Boeing Co (BA, Financial) in one year is $188.90, suggesting a upside of 18.55% from the current price of $159.34. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Boeing Co (BA) Summary page.
