Boeing is rising after a slump as Wall Street shrugs off lingering woes for its top-selling jet. Boeing stock jumped toward a rebound following an eight-week decline.
In a note Wednesday, Susquehanna analysts said they had expected soft deliveries from Boeing for September, due to issues related to aft pressure bulkheads. The fuselage components have slowed deliveries of the 737 jet, Boeing's top seller. Elsewhere, bright spots in September included 787 deliveries and gross order volumes, they said.
Susquehanna maintained a $270 price target on Boeing stock, saying commercial aircraft demand remains robust.
Boeing on Tuesday reported delivering 10 widebody 787 jets in September, the highest of any month in 2023. It received orders for 224 planes during the month, up from 45 orders in August. Deliveries of narrow-body 737 jets slipped to 15, down from 22 in August, and the lowest level in more than two years.
Following Boeing's delivery report, UBS analysts initiated Boeing stock coverage with a buy rating and 275 price target. They, too, noted strong fundamental aircraft demand. Boeing stock tends to track free cash flow, which the firm expects to compound at 36% through 2027, UBS said per The Fly.
On the defense side of its business, Boeing is reportedly sending smart bombs to Israel after the recent Hamas attacks. The sudden eruption of the Middle East war has fueled defense stocks at large.
Boeing Stock Tries To Take Off
Shares of the Dow Jones aviation giant gained 1.3% to 196.07 on the stock market today.
Orders have grown further in October, helping put Boeing stock on track for its first weekly gain since early August. On Wednesday, BA stock briefly regained its 21-day exponential moving average.
Although September was soft, Boeing aims to increase jet production and deliveries this year and in coming years.
The plane maker has faced issues as it ramps up.
Key partner Spirit AeroSystems, which supplies both the 737 and 787 jets, has seen production disruptions at various times in 2023.
In August, Spirit reported an issue with the aft pressure bulkhead on certain 737 models.
The 737 was already plagued with problems. It was grounded in 2019 after two fatal crashes and took another hit from the Covid-19 pandemic.
Boeing stock is up 3.2% so far this year. The Dow component is still far below pre-pandemic highs despite a sharp rally late last year.
