Barclays Reiterates Overweight Rating on Boeing (BA)

Barclays analyst David Strauss reiterated an Overweight rating and $210.00 price target on Boeing (NYSE: BA)

The analyst comments "MAX deliveries consist of a mix of aircraft that were produced prior to the grounding being lifted in late 2020 (storage) along with aircraft that have been produced since then (off the line). We estimate 102 MAX deliveries in Q2 (10 storage, 92 off line; six deliveries to China), following 104 in Q1 (13 storage, 91 off line; 12 deliveries to China), 35 in Q4 2024 (four out of storage; nine deliveries to China), 90 in Q3 (19 out of storage; 20 deliveries to China), 69 in Q2 (14 out of storage; five to China), 66 in Q1 (13 out of storage; 17 to China), and 387 (37 out of storage) in 2023. We estimate that ~50 (down from ~450), or ~40% of the MAX aircraft that are still in inventory (~130), are aircraft that have been in storage since the grounding. Of the remaining aircraft that are in inventory (~80 that have come off the line since the grounding was lifted), we estimate that ~50% are for North American airlines and ~30% are for Chinese airlines, with ~50% having been parked for more than a year. We estimate there are 28 MAX-7 in inventory (parked for ~39 months on average) and five MAX-10 in inventory (parked for ~19 months on average). We track first flights of aircraft coming off the production line, and our methodology implies a MAX production rate at ~30/mo, below recent high ~33/mo."

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Shares of Boeing closed at $209.79 yesterday.

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