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Investing.com - Barclays has reiterated an Overweight rating and $255.00 price target on Boeing (NYSE:BA) in a research note released Wednesday. The target sits within the broader analyst range of $150-$287, with InvestingPro data showing the stock has already surged nearly 55% over the past six months.
The investment bank’s analysis focuses on Boeing’s 737 MAX inventory situation, estimating approximately 120 MAX aircraft remain in storage. Of these, about 45 aircraft (roughly 40%) have been in inventory since the original MAX grounding. This inventory management challenge comes as Boeing maintains a moderate debt level and faces profitability headwinds, according to InvestingPro’s comprehensive analysis, which includes 8 additional key insights available to subscribers.
For the remaining 75 aircraft produced since the grounding was lifted, Barclays estimates approximately 45% are designated for North American airlines and 20% for Chinese carriers, with about 40% having been stored for more than 18 months.
The research note specifically identifies 28 MAX-7 aircraft in inventory, which have been parked for an average of 41 months, and five MAX-10 aircraft that have been stored for approximately 21 months on average.
Barclays’ tracking methodology, which monitors first flights of aircraft leaving the production line, suggests Boeing’s current MAX production rate is approximately 32 aircraft per month, below the recent high of about 38 per month.
In other recent news, Boeing is making significant strides with its 787 Dreamliner program. UBS has reiterated its Buy rating for Boeing, maintaining a price target of $280.00, as the company invests $1 billion to increase production capacity at its Charleston facility. This investment aims to boost production to 16 aircraft per month by 2028, setting a record for the 787 program. Meanwhile, Boeing has secured a $44.9 million contract modification for the remanufacture of Apache AH-64E aircraft, bringing the total contract value to over $3.1 billion. In a separate development, Boeing Defense plans to hire new workers to replace striking machinists in the St. Louis area, following a labor dispute involving the International Association of Machinists and Aerospace Workers. Additionally, the Federal Aviation Administration (FAA) has not yet decided on lifting the production cap on Boeing’s 737 MAX aircraft, though progress is being made. The FAA is also planning to propose changes to expedite the certification process for new commercial airplanes, aiming to modernize certification standards. These developments highlight Boeing’s ongoing efforts to expand production and navigate regulatory challenges.
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