Boeing CEO Optimistic on Production Recovery and Market Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Production Recovery Signal: Boeing (BA) CEO Kelly Ortberg indicated at the Bernstein Strategic Decisions Conference that the production of the 737 will increase to 47 aircraft per month, marking a significant recovery after years of manufacturing disruptions, which is expected to boost investor confidence and drive stock price appreciation.
- Order Backlog Situation: Ortberg noted that Boeing's order book is substantial, with new customers ordering 737 or 787 aircraft likely facing delivery timelines extending into the 2030s, reflecting strong market demand for Boeing's products and further solidifying the company's market position.
- Significant Certification Progress: Boeing (BA) has completed over 80% of certification flight testing for the 737 Max-7 and Max-10 programs and has received FAA authorization for the remaining tests, which is expected to accelerate the delivery process and enhance the company's competitive edge in the fiercely competitive aviation market.
- Defense Business Recovery: Boeing's defense sector shows signs of recovery, with Ortberg emphasizing a more cautious approach to accepting fixed-price development contracts, and anticipating stronger military growth prospects, particularly amid rising global demand for weapon systems.
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Analyst Views on BA
Wall Street analysts forecast BA stock price to rise
16 Analyst Rating
14 Buy
1 Hold
1 Sell
Strong Buy
Current: 228.780
Low
150.00
Averages
269.14
High
298.00
Current: 228.780
Low
150.00
Averages
269.14
High
298.00
About BA
The Boeing Company is an aerospace company. Its segments include Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Its BCA segment develops, produces and markets commercial jet aircraft principally for the commercial airline industry worldwide. Its family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models. Its BDS segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility. Its BGS segment provides services to its commercial and defense customers worldwide. It sustains aerospace platforms and systems with a range of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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