UBS Reiterates Buy Rating on Boeing (BA)

UBS analyst Gavin Parsons reiterated a Buy rating and $275.00 price target on Boeing (NYSE: BA).

The analyst commented, "
Dreamlifter flights, tracked by UBS Evidence Lab, historically have a close correlation to 787 production rates. Boeing transports structural pieces of the 787 in these modified 747 cargo planes, with the 787 now exclusively assembled at Charleston. Dreamlifter flight -> production -> first flight -> delivery. Over the 30-day period ending January 9th, flights increased by 69% yoy. Flights are at a 5.4/mo implied rate of 787 production. Prior to the typical holiday slowdown, Flights reached a rate of 7.4/mo for the first time since December 2020. January is off to a strong start, recording the highest weekly flights count (18 flights - Figure 6 ) in the second week of the year since pre-COVID levels. First flights, a lagging indicator of production, are currently at 8/mo, which implies Boeing may still be working down inventory on the 787 (ie higher build rate than inventory ship rate). We expect the gap between First and Dreamlifter flights to converge in the coming months, with the latter more aligned with production. It also suggests the steady stream of parts from suppliers is close to Boeing's target of 8/mo production this year."

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 $247.68 yesterday.

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