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Analysts see Boeing beating guidance after 'strong' June deliveries

Published 2023-07-12, 07:42 a/m
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Boeing (NYSE:BA) announced yesterday that it received 304 gross new aircraft orders in June, as well as 16 outright cancellations.

The jet maker also managed to deliver 60 aircraft last month, including 48 737-MAX and 6 787.

Goldman Sachs analysts said the orders and deliveries report for June was “strong.”

“Boeing and Airbus continue to see strong new aircraft demand and pricing on a multi-month basis. (2) Deliveries were above the production rate on the 737 MAX and 787. The MAX has seen a much faster recovery in deliveries than the market had feared following the April discovery of a non-conformance in vertical fin fittings,” the analysts said in a client note.

As a result, Goldman now expects Boeing “to meet or exceed delivery guidance for 2023, and continue to grow deliveries in future years as demand remains strong and supply chain improves.”

BofA analysts said the deliveries were in line with Aero Analysis Partners (AAP) estimates.

“We believe Boeing is still well positioned to reach its delivery target since deliveries tend to increase towards the end of the year,” they said.

Still, the analysts reiterated a Neutral rating on BA stock as “recovering commercial aero is partially offset by execution in both commercial aerospace and defense.”

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