Boeing Co BA shares dropped 4.8% on Friday after the corporate introduced it had as soon as once more run into manufacturing issues with its 787 Dreamliner.
What Occurred: On Thursday, Boeing mentioned it halted 787 deliveries to conduct additional evaluation of the fuselage high quality points found final yr.
Associated Hyperlink: American Airways Names Ex-Boeing Finance Chief As Chairman
Why It is Essential: Boeing had simply resumed 787 deliveries in August 2022 following a two-year halt to deal with manufacturing flaws. Boeing delivered simply 34 787s since August and had not made any deliveries of the plane since Jan. 26.
The Federal Aviation Administration should log off on the 787 earlier than Boeing can resume manufacturing.
Financial institution of America analyst Ronald Epstein mentioned Thursday that the newest information will additional frustrate Boeing’s suppliers with extra supply timeline uncertainty.
“Continued manufacturing delays and supply halts impacting current stock elevate considerations about Boeing’s skill to fulfill demand and stabilize the corporate’s manufacturing strains,” Epstein mentioned.
Associated Hyperlink: Boeing As soon as Once more Suspends Deliveries Of 787 Dreamliners: What You Want To Know
Fortuitously for buyers, Boeing reportedly had roughly 100 fully-built 787s.
Boeing’s new manufacturing halt didn’t change Epstein’s full-year 787 supply forecast for 76 planes.
Financial institution of America had a Impartial score and $225 value goal for Boeing.
Morgan Stanley analyst Kristine Liwag mentioned Friday that Boeing shares have restricted upside given its ongoing manufacturing issues.
“In our view, this problem highlights that regulatory dangers stay for Boeing,” Liwag mentioned.
Morgan Stanley had an Equal-Weight score and a $220 value goal for Boeing.
Benzinga’s Take: At this level, Boeing buyers are rising impatient with a seemingly endless stream of manufacturing issues with the 737 MAX and the 787 Dreamliner since 2019.
Boeing’s core enterprise and demand stay sturdy, however there is no query its model worth had taken a success prior to now three years.
Picture: Courtesy Boeing
