Goldman Sachs Expects Pace of Boeing (BA) Deliveries to Accelerate Through Year End

Goldman Sachs analyst Noah Poponak reiterated a Conviction Buy rating and $288.00 price target on Boeing (NYSE: BA) following the June aircraft order and delivery report showing" 50 gross orders, (35) outright cancellations, and 83 positive ASC 606 adjustments for the month of June. BA delivered 51 aircraft in the month, including 43 737-MAX and 0 787.

The analyst commented, "(1) Orders matched the YTD trend, cancellations were down on a LTM basis, and a number of MAX units were moved up in the backlog. In 1H22 Boeing booked 286 gross orders with 100 cancellations. We expect to see a continued recovery in air traffic and desire for more fuel efficient aircraft driving continued solid order activity moving ahead, with the Farnborough Airshow a possible catalyst. (2) Deliveries included 43 MAX units, the highest monthly pace since recertification. Reuters reported production has touched 31/mo but is yet to fully stabilize as supply chain bottlenecks are resolved. We expect the pace of deliveries to accelerate through the end of the year with China a possible near-term catalyst. There were 0 787 deliveries, which we expect to restart soon."

For an analyst ratings summary and ratings history on Boeing click here. For more ratings news on Boeing click here.

Shares of Boeing closed at $136.99 yesterday.

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