U.S. President Donald Trump is threatening to "decertify" the 2015 agreement that froze Iran's nuclear program — and if he follows through, it could hurt Boeing (NYSE: BA)
The U.S. aircraft maker has an agreement to sell 80 new planes to Iran Air and another 30 to Iranian carrier Aseman. The total value of those deals is about $20 billion.
Boeing is the best performing stock in the Dow Jones Industrial Average over the last year, doubling the performance of its nearest competitor.
Despite any potential problem, experts upped their price target on the stock last week to $315 a share, almost 25% higher than it is now.
The reason is that Boeing is oversold for next year, meaning the manufacturing giant would likely be able to sell those planes to another carrier if the Iran deal falls through. However, according to experts.
Boeing has sold just 90% of its 2019 inventory, meaning it could get stuck with extra planes.
If Trump does decide to "decertify," the nuclear deal — which would essentially remove the United States from the agreement — it's still unclear what would happen after that. Decertification would not necessarily mean all business ties are off. Europe and Asia have growing business ties with Iran, and officials from both continents are urging the U.S. to stay in the deal.
Iran is starved for new airplanes. Sanctions have led to a deterioration of the country's aging passenger fleet
Boeing shares began Monday ducked back five cents to $254.16, within a 52-week trading range of $130.74 to $259.30.
