Boeing (BA) Gains as Hiring Ramps for MAX Return
Buckingham analyst Richard Safran reiterated their view that BA remains a tactical buying opportunity amid the news.
To wit, "There hasn't been a lot of news recently regarding the MAX return to service. However, one bit of recent news supports the idea that BA may come close to achieving its early 4Q guide for an a MAX return to service. Specifically, press reports indicate that BA is hiring hundreds of temporary workers at its Moses Lake facility to support the large MAX inventory, but also in preparation for the MAX return to service. Investors have mostly stayed on the sidelines waiting for some visibility when the MAX returns to service. We think that BA hiring and expanding its delivery capacity is a positive sign that BA has confidence achieving its early 4Q19 guide for the MAX to return to service. We think the stock could go to $400-$450 driven primarily by a 9% FCF yield based on roughly $30/share in FCF in 2020."