Boeing's (NYSE:BA) September 737 deliveries remain slow, according to BofA analysts.
They told investors in a note Wednesday that, according to Aero Analysis Partners/AIR (AAP/AIR), 737 deliveries remain at a "sluggish pace," with only one delivery in the last week and a total of just three deliveries since the start of September.
"These figures are still far from the 15 deliveries anticipated by Boeing's CFO, Brian West," the analysts wrote, who maintained a Buy rating and $300 price target on the stock. "Additionally, AAP indicates that the aft pressure bulkhead (APB) issue looks deeper than Boeing's description, suggesting that the necessary rework for the issue is estimated to span four weeks, affecting 165 aircraft, including some built as far back as 2019."
They also contend that the "reactivation of Chinese Maxs is intensifying," with Chinese airlines' MAX fleet seeing a 99% return to service.
"AP noticed a reactivation of aircraft previously slated for China, as two aircraft that were supposed to be for Chinese airlines are now being prepared for delivery to India. That said, in order to reach the lower end of its annual delivery target, AAP suggests that Boeing may need to rely on the delivery of these China-bound MAX aircraft either to their intended customers or others," the analysts stated.