finished out 2022 strong and the new year is looking up, causing one analyst to hike his price target on the shares. He’s calling the stock a top pick for 2023.
Baird analyst Peter Arment raised his price target on
shares to $250 from $210. “Blowout” deliveries in December was a big reason.
“Our proprietary delivery checks reflect a surge in activity in December,” wrote Arment in a research report. He believes Boeing delivered 68 jets in the final month of the year, bringing the quarterly total to about 151 planes. That’s about 10% above consensus estimates for the quarter, according to Arment.
The new data and bullish call appear to be boosting shares. Boeing stock was up 1.8% to $193.94. The
Boeing typically reports monthly delivery figures around mid-month. Through November, Boeing had delivered 83 jets in the first two months of the fourth quarter and 411 for the full year. In 2021, tBoeing delivered 340 jets. In 2020, Boeing delivered just 157 jets.
Deliveries and production have been increasing after the dual problems of the Covid-19 pandemic and the 737 MAX grounding.
Boeing’s 737 MAX was grounded worldwide between March 2019 and November 2020 following two deadly crashes inside of five months. No planes were delivered to customers during the grounding. What’s more, airline traffic and profits declined significantly because of Covid-19, decreasing the need for new jets.
It was a perfect storm for Boeing. Deliveries in a normal year, before the two issues, would typically fall between 700 to 800 jets.
Arment sees 2023 commercial aircraft deliveries hitting 569 in 2023 and 633 in 2024. Rising deliveries means higher earnings and more cash flow.
He sees adjusted earnings in 2023 and 2024 coming in at about $5.50 and $8.20 a share, respectively. Wall Street currently projects $3.40 and $6.61 for those two years.
Arment forecasts 2023 and 2024 free cash flow of $4.3 billion and $8.2 billion, respectively. Wall Street currently projects $4.1 billion and $7.9 billion, respectively.
Arrment’s forecasts are a little higher than Wall Street, but other analysts do like the stock. Overall, about 77% of analysts covering Boeing shares rate them at Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 58%.
The average analyst price target is about $201 a share.
Boeing Stock Gets Bump as Analyst Sees Blowout Deliveries in December
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Boeing stock has begun 2023 in the green.
Jason Alden/Bloomberg
Boeing
finished out 2022 strong and the new year is looking up, causing one analyst to hike his price target on the shares. He’s calling the stock a top pick for 2023.
Baird analyst Peter Arment raised his price target on
Boeing
shares to $250 from $210. “Blowout” deliveries in December was a big reason.
“Our proprietary delivery checks reflect a surge in activity in December,” wrote Arment in a research report. He believes Boeing delivered 68 jets in the final month of the year, bringing the quarterly total to about 151 planes. That’s about 10% above consensus estimates for the quarter, according to Arment.
The new data and bullish call appear to be boosting shares. Boeing stock was up 1.8% to $193.94. The
S&P 500
and
Dow Jones Industrial Average
were down 0.2% and 0.3%, respectively.
Boeing typically reports monthly delivery figures around mid-month. Through November, Boeing had delivered 83 jets in the first two months of the fourth quarter and 411 for the full year. In 2021, tBoeing delivered 340 jets. In 2020, Boeing delivered just 157 jets.
Deliveries and production have been increasing after the dual problems of the Covid-19 pandemic and the 737 MAX grounding.
Boeing’s 737 MAX was grounded worldwide between March 2019 and November 2020 following two deadly crashes inside of five months. No planes were delivered to customers during the grounding. What’s more, airline traffic and profits declined significantly because of Covid-19, decreasing the need for new jets.
It was a perfect storm for Boeing. Deliveries in a normal year, before the two issues, would typically fall between 700 to 800 jets.
Arment sees 2023 commercial aircraft deliveries hitting 569 in 2023 and 633 in 2024. Rising deliveries means higher earnings and more cash flow.
He sees adjusted earnings in 2023 and 2024 coming in at about $5.50 and $8.20 a share, respectively. Wall Street currently projects $3.40 and $6.61 for those two years.
Arment forecasts 2023 and 2024 free cash flow of $4.3 billion and $8.2 billion, respectively. Wall Street currently projects $4.1 billion and $7.9 billion, respectively.
Arrment’s forecasts are a little higher than Wall Street, but other analysts do like the stock. Overall, about 77% of analysts covering Boeing shares rate them at Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 58%.
The average analyst price target is about $201 a share.
Write to Al Root at [email protected]
Source: https://www.barrons.com/articles/boeing-stock-deliveries-51672758284?siteid=yhoof2&yptr=yahoo