Boeing (NYSE:BA) has temporarily suspended the deliveries of its 787 Dreamliner jets over a fuselage component issue. While reviewing certification records, the plane maker found an analysis error by its supplier related to the 787 forward pressure bulkhead. Following the discovery, Boeing notified the Federal Aviation Administration (FAA) and halted the 787 deliveries.
The move will impact Boeing’s near-term deliveries as it will not be able to resume deliveries until it gets a nod from the FAA that the issue is resolved. However, Boeing doesn’t’ expect any impact on its full-year production and delivery outlook.
During the Q4 conference call, Boeing said it expects 787 deliveries to be between 70 and 80 airplanes in 2023.
It’s worth highlighting that Boeing recently got a record purchase order of 100 787 Dreamliner airplanes from United Airlines (NASDAQ:UAL). In addition, Boeing received an order of 20 787 Dreamliner from Air India last week.
Last month, Boeing reported strong Q4 revenues led by solid demand and deliveries. The company recorded 808 net orders and delivered 480 commercial airplanes in 2022. Thanks to the favorable demand environment, Boeing managed to narrow down losses both on a year-over-year and sequential basis.
What is the Prediction for Boeing Stock?
Boeing is poised to gain from the recovery in air travel demand and expansion of defense budgets. It has received 10 Buy and five Hold recommendations for a Moderate Buy Consensus rating. Meanwhile, analysts’ average price target of $234.33 on Boeing stock implies 12.59% upside potential from current levels.
