Earlier today, Boeing (NYSE:BA) revealed its expectations for 737 jet deliveries. The good news was that the deliveries would ultimately prove to be within range. The reason that Boeing lost slightly in Thursday afternoon’s trading is thanks to two qualifying words that sour the news considerably: “just barely.”
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The current goal is between 400 and 450 planes delivered, and Boeing will apparently cross that 400 line, albeit not by any great amount. The biggest problem Boeing encountered was with a supplier. Some might remember the trouble last month with Spirit Aerosystems (NYSE:SPR), where holes were drilled incorrectly, and that raised trouble with some of the key bulkheads responsible for maintaining cabin pressure.
New reports suggest another supplier caused some troubles of its own, as airlines flying both Boeing and Airbus (OTHEROTC:EADSF) planes were scrambling to find counterfeit engine parts that managed to get into the engines. The fake parts came from AOG Technics, a Jalopnik report noted, and came with forged certification documents. Meanwhile, Boeing is also working to shore up its defense operations with plans to sell Poland the F-15EX.
Nevertheless, analysts are fairly happy with Boeing. With 10 Buy ratings and four Holds, Boeing stock is considered a Moderate Buy according to analyst consensus. Furthermore, Boeing stock offers investors 21.09% upside potential on its $261.15 average price target.
