Boeing Co.’s (NYSE:BA) operational recovery is gaining momentum, fueled by a significant increase in aircraft deliveries for its key 737 MAX and 787 programs. This progress on production lines is signaling a potential rebound in cash flow and overall financial performance for the aerospace giant.
Bank of America Securities analyst Ronald J. Epstein reaffirmed a Buy rating on Boeing Co. with a $270 price forecast, pointing to stable deliveries and cash flow recovery as catalysts for stronger results.
He said consistent progress on the 737 Max program in September underpins the outlook for the third quarter, with Aero Analysis Partners projecting about 118 units delivered for the quarter, above the second quarter’s 104 and well ahead of last year’s 92.
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Epstein also highlighted the 787 program as a key contributor to Boeing’s momentum. With nine deliveries forecast for September, quarterly totals are expected to reach 26, an improvement from the 24 in the second quarter and the 14 delivered a year earlier.
He added the gains reflect operational stability but cautioned that the production line remains capped at rate-38, leaving timing of a shift to 42 dependent on FAA approval later in the fourth quarter.
The analyst justified his $270 price forecast by modeling the normalized free cash flow of $11 per share and applying a premium to the S&P 500.
He argued that a market premium is warranted by resilient demand for commercial jets and upside potential from better margins in the 737 and 787 programs, possible activist engagement, and defense contract wins.
At the same time, he flagged execution challenges, labor constraints, currency fluctuations, and reputational risks as near-term headwinds.
VietJet Delivery Adds Symbolic Boost
After a nearly decade-long wait, VietJet Air is set to receive its first 737 MAX aircraft from Boeing. The delivery, scheduled for Sunday, marks a significant milestone for the Vietnamese airline.
VietJet President Nguyen Thi Phuong Thao will be present for the handover ceremony at the Boeing factory.
Earlier this year, VietJet secured a $300 million financing deal for over 20 Boeing 787s, signaling a major fleet diversification.
In a separate development, Boeing has continued to grow its defense portfolio, securing a new contract with Singapore to supply four P-8A maritime patrol aircraft.
Price Action: BA shares were trading lower by 0.68% to $214.19 at last check Friday.
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