Boeing (BA) Signs Aircraft Leasing Deal with Iran
NEW YORK (TheStreet) -- Boeing (BA) - Get Report and the country of Iran have signed a contingent agreement for the sale and lease of 100 Boeing aircraft worth about $18 billion, CNBC's Michelle Caruso-Cabrera said on "Power Lunch" Thursday.
The deal means huge revenue for the company, but there is an even bigger benefit for Iran as it could open up the opportunity for other companies to do business there, Caruso-Cabrera reported.
Boeing is the first major U.S. company to do business with Iran since international sanctions were removed earlier in the year, in exchange for the country halting its nuclear program, according to NPR.
There are still other sanctions in place against the country regarding human rights issues and terrorism, especially among U.S. and foreign banks. As a result, Boeing will need to close the deal without using U.S. dollars or allowing Iran access to the U.S. financial system.
Shares of Boeing are down by 0.50% to $126.32 this afternoon.
Separately, TheStreet Ratings team set this stock at a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. TheStreet Ratings team feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
You can view the full analysis from the report here: BA