Boeing’s (NYSE:BA) deliveries jumped in 2022, thanks to the recovery in the airline sector and an increase in defense spending. The sustained demand across the portfolio of its products and solid backlog imply that the company could deliver solid financials. However, given the recent increase in its stock, the upside could be limited.
Boeing reported 774 commercial orders in 2022 and delivered 480 airplanes. This represents a year-over-year increase of about 41%. While Boeing’s deliveries increased significantly, they came in lower than Airbus (EADSY), which delivered 661 commercial aircraft in 2022. Meanwhile, Airbus recorded 1,078 gross new orders in the past year.
As for the fourth quarter, Boeing delivered 152 airplanes, compared to 99 in the year-ago quarter.
Cowen & Co. analyst Cai von Rumohr reiterated his Buy recommendation on Boeing stock following Q4 delivery numbers. The analyst said, “Healthy December order & deliveries suggest Q4 EPS & FCF should at least match above-guide consensus with potential upbeat “color” and guide on 2023.”
Boeing will report its Q4 financial results on January 25. Meanwhile, analysts expect Boeing to post earnings of $0.37 per share in Q4. Wall Street expects Boeing to return to profitability, while its operating cash flows will likely remain strong, reflecting higher commercial airplane deliveries.
What Is the Prediction for Boeing stock?
Boeing stock has 11 Buy, three Hold, and one Sell recommendations for a Moderate Buy consensus rating. Further, BA stock is up about 59% in three months. Thus, analysts’ price target of $215.50 implies a limited upside of 4.26%.
Bottom Line
As the airline sector recovers and the defense budget increases, Boeing is poised to capitalize on the demand and deliver solid financials. However, Morgan Stanley analyst Kristine Liwag believes that the recent growth in BA stock indicates that positives are already priced in. The analyst downgraded BA stock to Hold.
