Jefferies analyst Shelia Kahyaoglu reiterated a Buy rating and $300.00 price target on Boeing (NYSE: BA) but noted that the two key trends are outside of the company's control noting that FAA approval is required to restart 787 deliveries and the long awaited China certification of the MAX will likely make 2021 and 2022 into 2023, transition years. The company needs to double deliveries in 2022 to generate the expected $6.1BB of FCF in 2022, a reversal from $6.1BB usage in 2021.

The analyst stated "BA temporarily reduced the 787 rate to 2/mo from 5/mo. We expect 2/month for the remainder of 2021, going to 3/month for 2022 and exiting the year at 4/month. Rates recover to 5/month in H2 2023. This compares to our delivery est. of 14 in 2021 (no add'l in 2021) rising to 84/year in 2022/2023. The end result is BA is able to drive current 787 inventory (100 aircraft) down to 34 by 2023".

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Shares of Boeing closed at $207.03 yesterday.