On Thursday, Barclays reaffirmed its Equalweight rating on Boeing (NYSE:BA) shares, maintaining a price target of $235.00. The firm's analysis indicates a steady progression in Boeing's MAX aircraft deliveries, with a notable mix of pre-grounding and post-grounding production.
In the first quarter of 2024, Boeing is estimated to have delivered 56 MAX airplanes, including 14 to Chinese airlines. Out of these, 10 aircraft were from storage, marking a continuation from previous quarters where deliveries from storage gradually decreased.
The firm's assessment suggests that since the lifting of the grounding in late 2020, Boeing has delivered approximately 1,090 MAX aircraft, with around 35% originating from stored inventory. Current estimates show a reduction in stored aircraft inventory, with about 115 remaining from the original 450. These remaining aircraft, which are believed to be predominantly designated for Chinese carriers, have been in storage for an average of four years.
The inventory analysis further identifies that out of the remaining MAX aircraft, approximately 130 have been produced after the grounding was lifted. Of these, close to 45% are intended for North American airlines, and around 40% for Chinese airlines. Additionally, 60% of these aircraft have reportedly been parked for over a year. This detailed inventory breakdown provides insight into the distribution and storage status of Boeing's MAX aircraft as the company continues to navigate the post-grounding market.
InvestingPro Insights
As Boeing continues to make strides in delivering its MAX aircraft, financial metrics and analyst insights offer a deeper understanding of the company's performance and stock potential. According to recent data from InvestingPro, Boeing's market capitalization stands at a robust $114.57 billion. However, the company's financials reflect certain challenges, with a negative P/E ratio of -51.08, indicating that the company has not been profitable over the last twelve months.
Despite these challenges, Boeing's revenue has shown a positive trend, growing by 16.79% over the last twelve months as of Q1 2023. This growth is further evidenced by a 10.2% quarterly revenue increase in Q1 2023. Nevertheless, Boeing's gross profit margin during this period was relatively low at 11.89%, which aligns with one of the InvestingPro Tips highlighting the company's weak gross profit margins.
InvestingPro Tips also suggest that Boeing is a prominent player in the Aerospace & Defense industry, and analysts anticipate net income growth this year. However, caution is advised as the stock price has been quite volatile and is trading near its 52-week low. For investors seeking more comprehensive insights, there are an additional 11 InvestingPro Tips available, which can be accessed with a subscription. To enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
As Boeing gears up for its next earnings date on April 24, 2024, investors and analysts will be keenly watching the company's performance and delivery capabilities. With the current fair value estimates ranging from $168.69 by InvestingPro to $263 by analysts, the upcoming earnings report could be a pivotal moment for Boeing's stock trajectory.
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