We all know that aerospace stock Boeing (BA) has a book of business that stretches out for years. Any plane ordered today is not likely to arrive in a fleet before the end of the decade, and even that is a bit of a long shot. But new word from Ryanair (RYAAY) suggests that Boeing should be on track to deliver the planes it has ordered, including new 737 Max 10 aircraft. The news still was not good for investors, though, as shares slipped modestly in Thursday afternoon’s trading.
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Based on word from Ryanair CEO Michael O’Leary, the Max 10 is on track. Reports look for the aircraft to be certified by 2026’s third quarter, and the first jets should hit Ryanair tarmac sometime in “…the spring of 2027.” Boeing even offered a written note confirming they expect to deliver those Max 10s in the time frame in question. Ryanair, meanwhile, seems to be taking Boeing at its word, with O’Leary saying, “We do not believe there will be any delays to our first (delivery).”
This is actually a step up from just last month, when O’Leary gave an assessment of Boeing’s ability to deliver, saying that he was “…optimistic, but not confident.” Now, following a conversation with Boeing’s head of commercial aircraft, Stephanie Pope, the end result is Ryanair is a lot more confident than it was.
Landmark Delivery
And, in a move that shows the times truly are a-changing, Boeing made its first delivery of a 777F aircraft to Suparna Airlines, a Chinese airline. This is the first of two such aircraft set for delivery, and also represents the first freighter delivery to a Chinese airline since the US-China trade war kicked off.
This delivery actually has significance for a whole other reason; Chinese airlines were told to stop accepting Boeing aircraft for delivery back in April, a move that kicked off a feeding frenzy among airlines who had been waiting years for delivery in some cases. That stance softened in May, following a deal between the two parties, and now it looks like things are back, comparatively, to normal.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 17 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 39.15% rally in its share price over the past year, the average BA price target of $259.71 per share implies 21.21% upside potential.
