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Investing.com - Barclays (LON:BARC) has reiterated its Overweight rating and $210.00 price target on Boeing (NYSE:BA) stock, highlighting the aircraft manufacturer’s recent delivery patterns for its 737 MAX jets. With Boeing’s current market capitalization of $160 billion and analysts setting targets ranging from $150 to $275, InvestingPro data suggests the stock is currently fairly valued.
The investment bank estimates Boeing delivered approximately 102 MAX aircraft in Q2, consisting of 10 from storage and 92 newly produced planes, including six deliveries to China. This follows 104 deliveries in Q1 (13 from storage, 91 new production), showing relatively stable output in the first half of the year. These delivery numbers are crucial as analysts project 26% revenue growth for fiscal year 2025, according to InvestingPro data.
Boeing’s MAX delivery rate has fluctuated significantly over recent quarters, with 35 deliveries in Q4 2024, 90 in Q3, 69 in Q2, and 66 in Q1, according to Barclays’ analysis. The company delivered 387 MAX aircraft in 2023, with 37 coming from storage.
Barclays estimates that approximately 50 aircraft, or about 40% of the roughly 130 MAX planes still in inventory, have been in storage since the grounding period. Of the remaining 80 inventory aircraft produced since the grounding was lifted, approximately 50% are designated for North American airlines and 30% for Chinese carriers.
The investment bank’s tracking methodology suggests Boeing’s current MAX production rate is around 30 aircraft per month, which falls below the recent high of approximately 33 per month. While Boeing faces challenges with weak gross profit margins, InvestingPro analysis reveals 8 additional key factors affecting the company’s outlook. Get the full picture with InvestingPro’s comprehensive research report, available along with real-time metrics and expert analysis.
In other recent news, Boeing has delivered the 9th and 10th O3b mPOWER satellites to SES, enhancing their global connectivity capabilities. These satellites, equipped with Boeing’s software-defined payload technology, are set for a summer launch from Kennedy Space Center. Additionally, Boeing is set to take over Spirit AeroSystems (NYSE:SPR)’ facility in Belfast, Northern Ireland, after efforts to find a buyer were unsuccessful. In leadership changes, Stephen Parker has been appointed CEO of Boeing’s Defense, Space & Security business, while Jay Malave will take over as CFO, succeeding Brian West. Fitch Ratings has revised Boeing’s outlook to Stable from Negative, affirming its Long-Term Issuer Default Rating at ’BBB-’. The ratings agency highlighted Boeing’s improved production ramp and financial flexibility as factors in this outlook change. Boeing’s total backlog now exceeds $545 billion, with significant orders for the 737 aircraft.
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