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Boeing Has a Big Surprise for Its Stakeholders
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Boeing Has a Big Surprise for Its Stakeholders

Story Highlights

Boeing is moving towards resuming the deliveries of its 787 Dreamliner model. The news is expected to boost investors’ confidence in the stock.

Aerospace giant Boeing (NYSE: BA) recently announced that it is strongly progressing towards resuming the deliveries of its 787 Dreamliner model. According to a Reuters report, deliveries of the model came to a halt in May 2021, due to inspections and production issues.

The CEO of Commercial Airplanes, Stan Deal, said that the U.S. planemaker is predicting to witness a rise in new orders for the 787 Dreamliner model, following the resumption of deliveries. He stated that Boeing is steadily closing in on finishing the regulatory procedure to get approval for solutions to several production issues with the wide-body jets.

The Federal Aviation Administration (FAA) recently mentioned that it “will sign off on each delivery only after Boeing demonstrates the aircraft meets FAA safety standards,” according to a Reuters article.

Boeing has mentioned that it had about 115 Dreamliners in inventory at the end of March, valuing more than $25 billion cumulatively, as per a Wall Street Journal report.

BA recently impressed investors with solid deliveries for June 2022. Boeing reported 51 airplane deliveries in June, the first time in over three years. The total deliveries for the first half of the year came in at 216, up 38% from the first six months of FY2021. The June deliveries included 43 Boeing 737 MAX. The model has been seeing safety-related issues for almost a couple of years.

BA Commands a Strong Buy Rating

Overall, the Street is optimistic about the stock and has a Strong Buy consensus rating based on 15 Buys and three Holds. BA’s average price target of $215.29 signals that the stock may surge nearly 45.7% from current levels. Shares of Boeing have slipped 28.9% so far this year.

BA scores a ‘Perfect 10’ on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

TipRanks data shows that financial bloggers are 70% Bullish on Boeing, compared to the sector average of 64%. The news sentiment is also positive for the stock. Meanwhile, hedge funds are Very Positive, as they bought 148,100 shares of Boeing stock in the last quarter.

Boeing Is Well-Positioned to Succeed

The world’s largest aerospace company seems to be well-positioned to maintain its leadership in the space it operates. Although the company is seeing some regulatory and supply-chain concerns, the improving delivery numbers and recovering commercial business should help Boeing stay strong. Also, the resumption of deliveries of the 787 Dreamliner model is expected to provide solid support to the company’s top line.

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