BofA analysts said in a note Monday that current trends imply Boeing (NYSE:BA) will deliver 401 737s in 2023.
The analysts stated that BA has fallen short on its May rollouts, although they expect it to normalize in June.
"According to Aero Analysis Partners, Boeing's (BA) latest stabilizer challenge impacted May production levels and resulted in only 21 737 rollouts for the month (20 MAXs and 1 P-8)," explained the analysts, who have a Neutral rating and $225 price target on BA shares.
"Despite low rollouts in May, AAP stated that early June data suggests a significant increase in rollouts, however the AAP noted that it is difficult to distinguish between new production and aircraft that have completed the rework. They expect BA to return to the nominal rate in sometime in June but expects disruptions to continue until mid-July," they added. " If current trends persist, Boeing will deliver 401 737s in 2023, at the low end of its guidance of 400-450 737 aircraft."
Elsewhere on Monday, Citi analysts said the firm does not expect the strike at key Boeing Supplier Spirit Aerosystems to be prolonged, and they do not see a disruption in production.
"We are buyers of BA on weakness related to the strike news as any disruption to deliveries is likely to be temporal, not structural," said the analysts, who have a Buy rating and a $248 price target on BA.