On Tuesday, Stifel, a financial services firm, adjusted its price target for Boeing (NYSE:BA) shares, lowering it from $280 to $270, while continuing to endorse the stock with a Buy rating. The adjustment follows Boeing's latest orders and deliveries report, which showed the company secured 15 new aircraft orders, including 10 MAXs, one 777F, and four 787-9s, and completed 27 deliveries comprising 17 MAXs, one P-8, one tanker, one 767-300F, and seven 787-9s.
The report detailed that six of the delivered aircraft were sent to Chinese customers and two to Indian customers, indicating that Boeing is likely beginning to clear its inventory of MAX aircraft. Stifel's analysis suggests that the current media attention surrounding Boeing is impacting the company's stock performance.
Despite the recent challenges, Stifel's outlook for Boeing remains positive. The firm anticipates that deliveries from inventory will support Boeing through a slower production year in 2024, particularly for the MAX aircraft. Furthermore, the lack of degradation in Boeing's orderbook is seen as a sign of significant potential for the aerospace giant, contingent on the prompt resolution of identified issues.
Stifel also mentioned the potential acquisition of Spirit AeroSystems (NYSE:SPR) as a strategic move that could benefit Boeing. The firm believes that this acquisition could be a step in the right direction for Boeing. The revised price target of $270 reflects slightly lower free cash flow (FCF) estimates, according to Stifel's analysis.
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