BofA says Air China is reopening the runway for Boeing (BA) 737 MAX deliveries after a more than four year pause. Air China indicated it will take 12 MAX aircraft this year and 24 in 2024, the analyst tells investors in a research note. The firm believes Boeing being able to unwind the existing MAXs in inventory ear-marked for China will be a tailwind to free cash flow. The free cash flow tailwind could help offset the impact from the recent quality issues with Spirit AeroSystems (SPR), contends BofA. It keeps a Buy rating on Boeing with a $300 price target.
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